Proxy Fights Cost U.S. Companies $4.8 Million On Average

Proxy fights have cost US companies an average $4.8 million so far this year according to the latest issue of Activist Insight, with management consistently outspending activists for anything above micro-cap stocks in what activist investors say is a classic case of misaligned incentives, but partially just reflects the two sides different obligations

Management spends more on proxy fights than activists

As you would expect, the cost of a proxy fight goes up for both sides as the market cap of the target company increases, but the jump small- to mid-cap companies is still pretty striking, increasing almost five-fold according to quarterly and annual reports. Activist Insight points out that large-cap proxy fights are still pretty rare...