Definition of Gadfly:
A creative term to describe when an investor chooses to attend shareholder meetings with the intention to cause problems there.
A fly that bites livestock, especially a horsefly, warble fly, or botfly.
Gadfly is a colloquial term for an investor who attends the annual shareholders meeting to criticize the corporation's executives. A gadfly addresses many issues for the shareholders, often raising questions to management about specific company policies or corporate governance.
Named after small insects that bite and annoy livestock, the gadfly looks to irritate a corporation's management until it acts or compromises on shareholder concerns. Questions regarding executive compensation or inconvenient annual general meeting locations are often brought to light by a gadfly. A gadfly adds value for other shareholders by vocalizing his concerns and inciting action. Such investors are activist shareholders who advocate for changes in corporate governance by offering proposals for votes at annual meetings. Proposals offered by shareholders must be placed on the agenda and offered up for a vote at the next annual shareholders' meeting. Because most proposals raise issues company management tend to avoid, they often trigger a confrontation, forcing management to urge the shareholder base to vote it down or act on a compromise. Most proposals center on environmental concerns, social responsibility, corporate political spending or lobbying, executive compensation, proxy access, special meetings, or voting rules.
Synonyms of Gadfly
Abettor, Actuator, Animator, Cajoler, Coax, Coaxer, Encourager, Energizer, Firer, Gad, Galvanizer, Goad, Impeller, Inducer, Inspirer, Lash, Mover, Moving spirit, Oxgoad, Persuader, Pleader, Prick, Prime mover, Prod, Prompter, Rowel, Spark, Spark plug, Sparker, Spur, Stimulator, Sting, Tempter, Wheedler, Whip, Whiplash
How to use Gadfly in a sentence?
- Later, Hera sent the notorious gadfly to continuously bite and irritate Io.
Meaning of Gadfly & Gadfly Definition