Skadden Bolsters Activism Defense with Key Hire Amid Rising Investor Campaigns

Skadden, Arps, Slate, Meagher & Flom LLP, a leading global law firm, has made a strategic move to strengthen its position in the evolving landscape of corporate law. On August 1, 2024, the firm announced the hiring of Elizabeth Gonzalez-Sussman to head its shareholder engagement and activism practice.

Gonzalez-Sussman, a seasoned attorney, joins Skadden as a partner in the M&A Group. Her primary role will be to advise clients on responding to demands from activist investors, particularly hedge funds seeking to influence corporate strategy or leadership changes.

This appointment comes at a time when shareholder activism is on the rise globally. The number of activist campaigns has been increasing steadily since the early 2000s, with hedge funds often at the forefront of these initiatives. Activist investors typically aim to influence corporate governance, strategy, and executive compensation.

Skadden's decision to create a dedicated shareholder engagement and activism practice reflects a broader trend in the legal industry. Many law firms are establishing specialized groups to address the growing demand for activism defense services. This shift is driven by the expectation that activist campaigns will continue to proliferate in the coming years.

The impact of shareholder activism on long-term corporate performance remains a topic of debate among scholars and practitioners. However, its potential to effect significant changes in board composition, corporate strategy, and even CEO replacement is well-documented.

"I am excited to join Skadden's renowned M&A team and lead the firm's efforts in shareholder engagement and activism defense. As activist campaigns continue to evolve, it's crucial for corporations to have robust strategies in place to address these challenges effectively."

Founded in 1948, Skadden has established itself as one of the most prestigious law firms globally. With over 1,700 attorneys across 22 offices worldwide, the firm has been involved in more than 10,000 M&A transactions since 2000. Skadden's expertise in mergers and acquisitions, corporate restructuring, and securities law positions it well to navigate the complex landscape of shareholder activism.

As corporations face increasing pressure from activist investors, the demand for specialized legal services is likely to grow. Skadden's strategic hire of Gonzalez-Sussman demonstrates the firm's commitment to staying at the forefront of this evolving area of corporate law.