{"id":33162,"date":"2025-05-14T11:36:15","date_gmt":"2025-05-14T15:36:15","guid":{"rendered":"https:\/\/www.dhrglobal.com\/?p=33162"},"modified":"2025-05-14T11:36:16","modified_gmt":"2025-05-14T15:36:16","slug":"the-rise-of-communicators-on-boards-a-strategic-response-to-activist-investor-surge","status":"publish","type":"post","link":"https:\/\/www.dhrglobal.com\/insights\/the-rise-of-communicators-on-boards-a-strategic-response-to-activist-investor-surge\/","title":{"rendered":"The Rise of Communicators on Boards: A Strategic Response to Activist Investor Surge\u00a0"},"content":{"rendered":"\n<div class=\"block-hero alignfull  has-breadcrumb\">\n    <div class=\"outerwrap\">\n        <div class=\"wrapper\">\n            <div class=\"copy\">\n\n                                    <ul>\n                        <!-- Breadcrumb NavXT 7.0.2 -->\n<li><a property=\"item\" typeof=\"WebPage\" title=\"Go to Insights.\" href=\"https:\/\/www.dhrglobal.com\/insights\/\" class=\"post post-page\" aria-current=\"page\"><span property=\"name\">Insights<\/span><\/a><meta property=\"position\" content=\"1\"><\/li>                    <\/ul>\n                \n                                    <h1>The Rise of Communicators on Boards: A Strategic Response to Activist Investor Surge <\/h1>\n                \n            <\/div>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div class=\"block-insights-detail \">\r\n\t<div class=\"intro\"><p><span class=\"TextRun SCXW210860847 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW210860847 BCX0\">C<\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">orporate governance is <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">evolvi<\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">ng, <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">driven by a<\/span><span class=\"NormalTextRun SCXW210860847 BCX0\"> surge in activist investor campaigns <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">in <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">2024<\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">. With a record <\/span><\/span><a class=\"Hyperlink SCXW210860847 BCX0\" href=\"https:\/\/www.ib.barclays\/our-insights\/shareholder-activism-surged-2024.html#:~:text=to%20the%20newsletter.-,1.,an%20all%2Dtime%20low%20proportion.\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"TextRun Underlined SCXW210860847 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW210860847 BCX0\" data-ccp-charstyle=\"Hyperlink\">243 campaigns launched <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\" data-ccp-charstyle=\"Hyperlink\">worldwide<\/span><span class=\"NormalTextRun SCXW210860847 BCX0\" data-ccp-charstyle=\"Hyperlink\"> \u2013 <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\" data-ccp-charstyle=\"Hyperlink\">the highest since 2018<\/span><\/span><\/a><span class=\"TextRun SCXW210860847 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW210860847 BCX0\"> \u2013 <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">companies are re<\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">think<\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">ing board composition to <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">strengthen<\/span><span class=\"NormalTextRun SCXW210860847 BCX0\"> their defenses and adapt to <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">shifting <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">investor <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">expectations<\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">. Notably, <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">a key part of <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">this<\/span><span class=\"NormalTextRun SCXW210860847 BCX0\"> evolution<\/span><span class=\"NormalTextRun SCXW210860847 BCX0\"> is <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">the <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">growing <\/span><span class=\"NormalTextRun SCXW210860847 BCX0\">demand<\/span><span class=\"NormalTextRun SCXW210860847 BCX0\"> for experienced communicators to join corporate boards.<\/span><\/span><span class=\"EOP SCXW210860847 BCX0\" data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<\/div>\t<div class=\"meta\">\r\n\t\t<p class=\"date\">May 14, 2025<\/p>\r\n\t\t<p class=\"type\"><a href=\"https:\/\/www.dhrglobal.com\/insights\/#\/type\/insights\">Insights<\/a><\/p>\t\t<p class=\"author\">Authors:<\/p><ul><li><a href=\"https:\/\/www.dhrglobal.com\/consultant\/heather-smith\/\">Heather Smith<\/a><\/li><li><a href=\"https:\/\/www.dhrglobal.com\/consultant\/jessica-bayer\/\">Jessica Bayer<\/a><\/li><\/ul>\t<\/div>\r\n<\/div>\n\n\n<h2 class=\"is-style-underlined has-dark-blue-color has-text-color\"><strong>Engaging With Activist Investors Is Critical<\/strong>&nbsp;<\/h2>\n\n\n\n<p>The surge of activist campaigns worldwide across companies of all sectors and sizes has fundamentally upended boardroom dynamics. <a rel=\"noreferrer noopener\" href=\"https:\/\/corpgov.law.harvard.edu\/2025\/03\/14\/shareholder-activism-2024-review-and-2025-outlook\/?utm_source=chatgpt.com\" target=\"_blank\">About 20% of S&amp;P 500 companies have a shareholder activist among their investors<\/a>, with many activists \u2013 and their chosen director candidates \u2013 already serving on corporate boards. Board directors must engage productively with shareholder activists and their appointees, setting aside personal tensions that may arise from a contested proxy fight. More than ever, success in these interactions depends on strong communication skills and high emotional intelligence.&nbsp;<\/p>\n\n\n\n<h2 class=\"is-style-underlined has-dark-blue-color has-text-color\"><strong>Communicators: A Critical Boardroom Asset<\/strong>&nbsp;<\/h2>\n\n\n\n<p>As activist investors gain traction, corporate boards face increasing pressure to improve stakeholder engagement and manage public perception. The replacement of a record 27 CEOs in 2024 highlights the stakes. In this climate, strategic communication is more essential than ever. According to <a rel=\"noreferrer noopener\" href=\"https:\/\/corpgov.law.harvard.edu\/wp-content\/uploads\/2025\/01\/Barclays-2024-Review-of-Shareholder-Activism_vF.pdf\" target=\"_blank\">Barclays 2024 Review of Shareholder Activism<\/a>, organizations increasingly recognize that communicators bring critical expertise in narrative development, crisis management, and stakeholder engagement \u2013 making them valuable additions to modern boardrooms.&nbsp;<\/p>\n\n\n\n<p>\u201cSuccessful boards regularly engage with investors and prepare to clearly articulate their companies\u2019 stories to alleviate potential governance issues during proxy season,\u201d said <a href=\"https:\/\/www.dhrglobal.com\/consultant\/heather-smith\/\">Heather Smith<\/a>, a leader in DHR\u2019s CEO &amp; Board Practice.&nbsp;<\/p>\n\n\n\n<p>The ability to craft compelling corporate narratives, manage media relations, and build trust with investors and the public is becoming a critical asset. Communicators are skilled in anticipating and mitigating reputational risks, ensuring that companies present a coherent and persuasive message to all stakeholders, particularly during periods of scrutiny or upheaval.&nbsp;<\/p>\n\n\n\n<h2 class=\"is-style-underlined has-dark-blue-color has-text-color\"><strong>Preparing for 2025: A Proactive Strategy<\/strong>&nbsp;<\/h2>\n\n\n\n<p>In DHR\u2019s database of 1.7 million executives, including more than 46,000 communications executives, 11% of current or former Chief Communications Officers (CCOs) sit on corporate boards today.\u202f&nbsp;&nbsp;<\/p>\n\n\n\n<p>\u201cBoards that recognize a need to build stronger relationships among all stakeholders will increasingly seek leaders with communications and investor relations skills,\u201d shared Heather Smith. \u201cThus, we expect the number of CCOs in the boardroom to increase over the next several years.\u201d&nbsp;<\/p>\n\n\n\n<p>As companies prepare for ongoing activist pressure this year, adding communicators to boards is becoming a strategic advantage. Experienced communications professionals bring valuable insights into stakeholder concerns and help craft strategies that align with public and investor expectations.&nbsp;<\/p>\n\n\n\n<p>Moreover, communicators also play a key role in addressing environmental, social, and governance narratives, which are central to many activist campaigns. Their expertise ensures that corporate messages feel authentic and align with societal values and investor priorities.&nbsp;<\/p>\n\n\n\n<h2 class=\"is-style-underlined has-dark-blue-color has-text-color\"><strong>Are You Prepared?<\/strong>&nbsp;<\/h2>\n\n\n\n<p>The rise of activist investors isn\u2019t just a challenge \u2013 it\u2019s an opportunity to evolve. Bringing communicators into boardrooms is a proactive way to protect corporate reputation and strengthen stakeholder relationships. Companies that prioritize strategic communication at the board level will be better prepared to navigate activist pressures, promoting transparency, resilience, and stronger alignment with stakeholders\u2019 values.&nbsp;<\/p>\n\n\n\n<p>\u201cProxy contests are battles of credibility and persuasion between a board and a dissident shareholder,\u201d said Jared Levy, Partner and Head of Activism Defense at FGS Global. \u201cBoard refreshment and diversification help deter activism, but a strong communicator on the board who can engage effectively with activists and shareholders may be the single most potent defense.\u201d&nbsp;<\/p>\n\n\n<div class=\"block-cta has-image alignfull\">\n\t<div class=\"maybe-wrapper\">\n        \t\t<div class=\"img\" style=\"background-image: url('https:\/\/www.dhrglobal.com\/wp-content\/uploads\/2023\/04\/Smith_Heather_Web-edited.jpg');\"><\/div>\n        \t\t<div class=\"left\">\n\t\t\t<h2>Heather Smith<\/h2>\t\t\t<p class=\"subheading\">Partner, Board &amp; CEO Practice<\/p>\t\t<\/div>\n\t\t<div class=\"right\">\n            \n\n<p>As a member of the Board &amp; CEO Practice at DHR, Heather works with clients to successfully place C-level executives, chairmen, CEOs and board directors. She is based in Chicago.<\/p>\n\n\n\n<div class=\"wp-block-button alignleft\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.dhrglobal.com\/consultant\/heather-smith\/\">Meet Heather<\/a><\/div>\n\n\n        <\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n<div class=\"block-cta has-image alignfull\">\n\t<div class=\"maybe-wrapper\">\n        \t\t<div class=\"img\" style=\"background-image: url('https:\/\/www.dhrglobal.com\/wp-content\/uploads\/2023\/03\/Bayer_Jessica_Web.jpg');\"><\/div>\n        \t\t<div class=\"left\">\n\t\t\t<h2>Jessica Bayer<\/h2>\t\t\t<p class=\"subheading\">Managing Partner, Corporate Affairs and Communications<\/p>\t\t<\/div>\n\t\t<div class=\"right\">\n            \n\n<p>Jessica serves as the Managing Partner of DHR\u2019s Corporate Affairs and Communications&nbsp;Practice, based in Washington, D.C. With a strong, global network and experience leading C-level searches within the communications space, Jessica develops and maintains strong relationships with industry leaders, understands the evolving nature of agencies and is a trusted advisor to her clients.<\/p>\n\n\n\n<div class=\"wp-block-button alignleft\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.dhrglobal.com\/consultant\/jessica-bayer\/\">Meet Jessica<\/a><\/div>\n\n\n        <\/div>\n\t<\/div>\n<\/div>\n\n\n\n","protected":false},"excerpt":{"rendered":"<p>Engaging With Activist Investors Is Critical&nbsp; The surge of activist campaigns worldwide across companies of all sectors and sizes has fundamentally upended boardroom dynamics. About 20% of S&amp;P 500 companies have a shareholder activist among their investors, with many activists&hellip;<\/p>\n","protected":false},"author":25,"featured_media":33240,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[46,45,43,47],"insights_type":[49],"acf":[],"_links":{"self":[{"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/posts\/33162"}],"collection":[{"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/comments?post=33162"}],"version-history":[{"count":18,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/posts\/33162\/revisions"}],"predecessor-version":[{"id":33245,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/posts\/33162\/revisions\/33245"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/media\/33240"}],"wp:attachment":[{"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/media?parent=33162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/categories?post=33162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/tags?post=33162"},{"taxonomy":"insights_type","embeddable":true,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/insights_type?post=33162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}