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Can America’s Companies Survive America’s Most Aggressive Investors?
Article

Can America’s Companies Survive America’s Most Aggressive Investors?

Alana Semuels
The Atlantic, 2016
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Recommendation

American companies have lost thousands of workers, innovative ideas and possibly their future existence to “activist investors” whose only concern is for the shareholder’s immediate profit. Uncovering the strategies of such investors, Atlantic staff writer Alana Semuels shows why short-term gains, layoffs, and R&D termination aren’t in the best interests of the company or the country. getAbstract recommends this article to business leaders, stock market investors and economy enthusiasts.

Summary

In January 2016, the long-standing American chemical company DuPont laid off 5,000 employees. These workforce cuts didn’t come as a result of poor business performance; in fact, DuPont’s shareholder returns had recently increased by 256%. The reason was something altogether more concerning: DuPont had become the target of an “activist investor” campaign.

Traditionally, American companies served the dual purpose of creating jobs and making a profit for the shareholders. Innovations and technological improvements were a natural by-product of US company culture. R&...

About the Author

Alana Semuels is a staff writer at the The Atlantic. She was previously a correspondent for the Los Angeles Times.

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