Breakthrough for shareholders

healthsIn an unprecedented move for a major business, HealthSouth Corp. will reimburse activist shareholders for the costs involved with unseating management-backed directors.  LawProfessor Elizabeth Nowicki, a former SEC and Wall Street attorney, says the HealthSouth initiative may mark a sea change in how boards respond to shareholders clamoring for accountability.

“Now that HealthSouth has voluntarily given shareholders’ more access to proxy contests and director elections, activist shareholders are likely to be emboldened and other boards are going to feel pressure to address the issue.”

Contact Elizabeth Nowicki, 617-353-2807, enowicki@bu.edu

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