According to an article in today's WSJ, HealthSouth Corp. will become the first US business to reimburse activist investors' "reasonable expenses" if they are successful in replacing Company Directors through proxy contests.
Click here to read the article.
In their press release, HealthSouth stated, "HealthSouth believes there is a close correlation between good governance and good performance," said Jon F. Hanson, non-executive Chairman of the Board. "By reimbursing shareholders under certain conditions for reasonable expenses relating to director nominations, we believe we will further enhance director accountability and permit shareholders to have a greater say in the running of their company. This far-reaching amendment to our Bylaws will be good for our shareholders, our Board and our Company."
Click here to read HealthSouth's press release