Cambridge Business Association
Winning Moves in the Age of Shareholder Activism
Report

Winning Moves in the Age of Shareholder Activism

Jody Foldesy, Gerry Hansell, Daniel Friedman, Joel Janda, Jeff Kotzen and Tawfik Hammoud
Boston Consulting Group, 2015
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Editorial Rating

9

Qualities

  • Innovative
  • Applicable

Recommendation

Shareholder activists, once considered a fringe element, have become a loud, powerful voice with which leaders of companies both large and small must reckon. Activists target bigger firms than before, and they wield their influence over businesses more forcefully than in the past. While corporations may view them as a headache, shareholder activists can push firms toward more rational portfolios, better honed strategies and higher share values. getAbstract recommends this authoritative report from Boston Consulting Group professionals to senior managers and boards of directors, who should take its smart advice seriously, before activists pounce.

Summary

The shareholder activist landscape has evolved. At one time, activist investors hesitated to disclose potential targets in their portfolios. Now, they publicize their plans to force change in the business strategies of the companies whose shares they own. The influence of activists has grown with their size: They’ve gone from managing $58 billion in assets in 2007 to $120 billion in 2014. Activists have mounted campaigns against 15% of S&P 500 firms since 2009, and the number of actions at large companies – those with more than $100 million in market capitalization – rose nearly fourfold from 2011 to 2014. Shareholder activism...

About the Authors

Jody Foldesy et al. are professionals with the Boston Consulting Group.

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