Few would expect even the most contentious and high-stakes activist-company disputes to end in something close to a handshake. Yet that is increasingly part of the story. Informal settlements now appear with enough regularity—and in sufficiently high-profile engagements—to make the paradox hard to ignore, even when a proxy contest intervenes along the way.

As used here, an informal activist settlement is a privately negotiated resolution of a disagreement between a company and an activist investor over strategy, governance, capital allocation, leadership, strategic alternatives, or other corporate matters. Unlike a formal settlement, it need not be embodied in a publicly disclosed written agreement. Instead, the outcome may be reflected in press releases and public filings announcing board appointments, related commitments, and statements of support from the activist.

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