kaal:claim:5583610-005

Negotiated settlements that hand activists board seats risk entrenching incumbents, whereas LER's consumptive utilities are designed to produce consensus and alignment without ceding board representation.

Source quote, verbatim

Unlike negotiated settlements that, in granting activists board seats, risk incumbent entrenchment,15 LERs incentivize consensus and alignment through LER's consumptive utilities, thus, reducing conflict while enhancing shareholder engagement.

From

Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025), 1. Introduction, p. 5
https://ssrn.com/abstract=5583610 · source PDF

Cite as

Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025). SSRN: https://ssrn.com/abstract=5583610

Holds when

settlement-based responses to activist campaigns

Classification

failuresupport: arguedfailure: settlement entrenchmentfamily: agency-cost-and-managerial-opportunismcorporate-governance

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