When activists appear, the narrative quickly shifts from defense to value creation—or it should. This quiz probes how you communicate with all shareholders under tight securities rules while presenting a credible plan.
What is the primary audience for your messaging once an activist surfaces?
All shareholders and key stakeholders—not the activist alone.
Only proxy advisers; retail holders do not matter.
Only employees; investors will read filings later.
Only the activist fund’s partners.
Which disclosure rule most constrains private back‑and‑forth with select investors during a contest?
The EU CSRD sustainability directive.
Regulation FD’s prohibition on selective disclosure of material non‑public information.
The FTC Endorsement Guides.
FINRA advertising rules for broker‑dealers.
Which tone is most effective in shareholder letters responding to an activist?
Silence until the meeting so messages cannot be rebutted.
Sarcastic tone and internet memes to drive virality.
Issue‑focused, evidence‑backed, and forward‑looking with milestones and accountability.
Personal attacks against the activist’s past performance.
Who should be authorized to speak externally during an activist campaign?
Only the activist, to reduce noise from management.
Any director who wishes to post on personal social media.
All employees; more voices show confidence.
A limited number of trained spokespeople aligned with counsel and IR under a central plan.
How should you address proxy adviser frameworks in your messaging?
Map your rationale to criteria used by ISS/Glass Lewis and provide data investors can verify.
Ignore proxy advisers; only retail votes matter.
Promise future returns without evidence or milestones.
Rely on private calls to explain the details.
What is the best first public document after an activist’s initial white paper?
No response until the DEF 14A is filed.
A measured response letter and microsite that summarize facts, outline a plan, and house filings and FAQs.
An employee‑only memo leaked to social media.
A viral video mocking the activist’s analysis.
Which data point most strengthens your argument in a capital allocation dispute?
Anecdotes from customer service calls.
Generic claims that “the market will come back.”
Comparative returns and scenario analysis tied to credible timelines and governance oversight.
A stock meme with rocket emojis.
During settlement talks, which communication is most prudent?
Live‑tweet key terms to show transparency.
Promise outcomes before the board has deliberated.
Let rumors run to pressure the other side.
Avoid public play‑by‑play; prepare simultaneous internal and external messaging in case talks fail.
What’s the right way to engage employees once a proxy fight becomes public?
Share permissible facts, direct media to official channels, and avoid pressuring employees to campaign.
Ban employees from discussing the matter at all times.
Offer bonuses for positive social posts supporting management.
Ask employees to post management talking points on personal accounts.
How should you time earnings guidance or strategic updates during an active campaign?
Feed early numbers to friendly funds to build momentum.
Use regular, recognized disclosure channels and calendars; avoid ad‑hoc selective updates aimed at rebutting the activist.
Hold data until the last day then release only on social media.
Issue surprise guidance in a closed investor meeting.
Starter
You see the contours—center the shareholder audience, not the activist, and avoid personal attacks.
Solid
Solid: align to Reg FD, tailor talking points to ISS/Glass Lewis frameworks, and tie actions to a measurable value plan.
Expert!
Expert: one voice, disciplined disclosure, proactive investor engagement, and a credible roadmap with milestones.
