Averting Proxy Wars: 10 Companies Opting for Activist Investor Settlements

7. WEX Inc. (NYSE:WEX)

Activist Investor: Impactive Capital

Number of Hedge Fund Holders: 40

WEX Inc. (NYSE:WEX) has performed strongly since it reached a cooperation agreement with activist investor Impactive Capital in May. The stock is up about 22% year-to-date, outperforming the broader market. The agreement ended a contentious proxy battle over board representation and corporate strategy.

The activist investor had criticized the company’s operating performance, governance, and strategic direction. Its campaign focused on pushing management to improve pricing discipline, reduce costs, and simplify operations. It also called for separating the company’s employee benefits business. The activist also highlighted WEX’s underperformance relative to industry peers.

As part of the agreement, WEX Inc. agreed to appoint three new independent directors to its board: Kurt Adams, Ellen Alemany, and Lauren Taylor Wolfe, co-founder and managing partner of Impactive Capital. The board was also expanded to 11 directors, with Impactive securing a seat for its co-founder. Is WEX a good stock to buy?

WEX Inc. also agreed to separate the roles of chairman and chief executive officer, a significant corporate governance change. In exchange, Impactive withdrew its competing director nominations and ended its proxy solicitation, agreeing to support the revised board slate.