Event | Spencer Stuart

The U.S. Securities and Exchange Commission’s recently finalized rule requiring a universal proxy card (UPC) in all contested director elections is expected to affect the way future proxy contests and board elections are strategized and conducted. While it is too soon to know exactly how the UPC will impact director elections, experts predicted that boards should prepare for more personal director elections, increased pressure for settlements and growing proxy adviser influence. Preparations may include updating bylaws to minimize the disruption from shareholder slates, understanding the different proxy voting structures of investors and engaging strategically and proactively with investors – including articulating the value that each director brings to the board.