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72 N.Y.U. Ann. Surv. Am. L. 113 (2017-2018)
Exit vs. Voice: A Comparison of Divestment and Shareholder Engagement

handle is hein.journals/annam72 and id is 125 raw text is: EXIT VS. VOICE: A COMPARISON OF DIVESTMENT AND SHAREHOLDER ENGAGEMENT ALEX GORMAN* Introduction .... ....................................... 114 I. Background .................................. 116 A. The Rise of Anti-Corporate Activism ............ 116 B. Introducing Anti-Corporate Activist Tactics ...... 119 1. Audience: Activist Tactics Depend on the Intended Audience ...................... 119 2. Scale ................................. 121 C. Audiences for Shareholder Campaigns .......... 122 D. Exit and Voice Framework . ................... 124 II. Divestment ................................... 125 A. Goals .................................... 126 B. Distinction from Socially Responsible Investing .. 128 C. Distinction from Disinvestment ................ 130 III. Engagem ent ......................................... 132 A . G oals ............................................ 133 B. Methods .................................. 133 1. Shareholder Voting Power .................. 133 2. Shareholder Resolutions ..................... 134 3. Shareholder Meetings .................... 137 4. General Engagement ..................... 139 C. Distinction from Shareholder Activism .......... 140 IV. Analysis.. ................................... 142 A. Costs of Pursuing the Tactic .................... 142 1. D ivestm ent .................................. 142 2. Engagement .. .......................... 147 3. Monitoring Costs ........................ 151 B. Direct Costs Imposed on Target Company ....... 152 1. Direct Costs Imposed by Divestment are Attenuated ............................. 153 * Finance associate at Hogan Lovells in New York. J.D., New York University School of Law, 2014; B.A., Stanford University, 2004. This Note is dedicated to the memory of my mother, Jeanette Gorman, my strongest supporter and most unforgiving editor. Special thanks to Professor Ryan Bubb for his invaluable input at the early stages of this paper and to the staff of the NYU Annual Survey of American Law for their excellent editorial contributions. Views expressed herein are my own. 113 Imaged with the Permission of N.Y.U. Annual Survey of American Law

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