Trump tariffs, economic uncertainty fuel more settlements between CEOs and activists

From Yahoo Finance: 2025-04-04 06:06:00

Shares of Yeti Holdings fell in December and March due to Trump’s tariff threats on China, where Yeti has factories. Engaged Capital pushed for changes at Yeti, leading to a settlement that boosted shares by 6%. This trend of settlements amid market uncertainty is growing, with 29 global companies settling in Q1, a 32% increase from last year.

Corporate settlements are on the rise as companies seek to avoid distractions and focus on operations post-Covid. Activists and companies are more willing to settle to remove risks and enhance returns. While some board fights continue, both sides are showing flexibility and eagerness to find common ground. Activists are now less focused on securing board seats and more cautious about costly fights.

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