In today’s briefing:
- Shareholder Activism Plays a Significant Role in Companies that Are Slow to Change
Shareholder Activism Plays a Significant Role in Companies that Are Slow to Change
- Shareholder activism approaches include those seeking to resolve balance sheet issues, those targeting governance practices, those seeking to restructure business portfolios, and those seeking to improve business profitability.
- In approaches that call for business strategy reform, shareholders may require the company to establish a special committee, including outside directors and outside experts, to discuss solutions to issues.
- The discussions of “Strategy Committee” can significantly alter the shape of a company. Since few managers manage to evolve with changes in business environment, shareholder activism plays a significant role.