The examples and perspective in this article may not represent a worldwide view of the subject. You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate.(January 2024) (Learn how and when to remove this message)
Shareholder activism is a form of activism in which shareholders use equity stakes in a corporation to put pressure on its management.[1] A fairly small stake (less than 10% of outstanding shares) may be enough to launch a successful campaign. In comparison, a full takeover bid is a much more costly and difficult undertaking. The goals of shareholder activism range from financial (increase of shareholder value through changes in corporate policy, cost cutting, etc.) to non-financial (disinvestment from particular countries, etc.).[2] Shareholder activists can address self-dealing by corporate insiders, although large stockholders can also engage in self-dealing to themselves at the expense of smaller minority shareholders.[3]: 241
Shareholder activism can take any of several forms: proxy battles, publicity campaigns, shareholder resolutions, litigation, and negotiations with management. Daniel Loeb, head of Third Point Management, is notable for his use of sharply written letters directed towards the CEOs of his target companies.
Activism may help to address the principal-agent problem where the management (agents) do not adequately respond to the wishes of the principals (investors) of publicly traded companies. In the 2010s, investments in the activist asset class grew, with activists receiving coverage by the media[4] and positive attention from investors.[5] Activists have typically engaged in adversarial campaigns, but have also in some cases been able to acquire board seats with a formal proxy context.[6]
Shareholder activists are making their mark on mergers and acquisitions as well – a 2015 survey of corporate development leaders found that 60% of respondents saw shareholder activism affecting transaction activity in their industry.[7] Increasingly, however, the non-financial form of shareholder activism is affecting companies in a range of sectors. Shareholders, often with a comparatively small stake in a company, are seeking to influence the company's environmental and social performance.[8]
Some of the recent activist investment funds include: California Public Employees' Retirement System (CalPERS),[9] Icahn Management LP, Santa Monica Partners Opportunity Fund LP, State Board of Administration of Florida (SBA),[10][11][12][13] and Relational Investors, LLC.
Due to the Internet, smaller shareholders have also gained an outlet to voice their opinions. In 2005, small MCI Inc. shareholders created an online petition to protest the MCI/Verizon merger.
^Reasonable Investor(s), Boston University Law Review, available at: http://ssrn.com/abstract=2579510 Archived 20 May 2020 at the Wayback Machine
^"Activist Investor Definition". Carried Interest. Archived from the original on 25 June 2019. Retrieved 17 July 2015.
^Cite error: The named reference :2 was invoked but never defined (see the help page).
^Grossman, Richard; Arcano, Stephen. "Navigating Today's Shareholder Activism Landscape". Transaction Advisors. ISSN 2329-9134. Archived from the original on 8 November 2014.
^Golden, Peter; Richter, Philip; Schwenkel, Robert; Shine, David; Sorkin, John; Weinstein, Gail. "Shareholder Activism in M&A". Transaction Advisors. ISSN 2329-9134. Archived from the original on 9 November 2014.
^Gerber, Marc. "US Corporate Governance: Have We Crossed the Rubicon". Transaction Advisors. ISSN 2329-9134. Archived from the original on 5 June 2016.
^Ruggeri, Chris; Kirschner, Ken; Blanchard, Tony. "Corporate Development Strategy: Thriving in your Business Ecosystem". Transaction Advisors. ISSN 2329-9134. Archived from the original on 2 February 2017.
^Cundill, Gary (2017). "Non-financial shareholder activism: a process model for influencing corporate environmental and social performance". International Journal of Management Reviews. 20 (2): 606–626. doi:10.1111/ijmr.12157. hdl:1826/12686. S2CID 148727396.
^Forbes: "Calpers Votes Against Jamie Dimon, Again" "Calpers Votes Against Jamie Dimon, Again". Forbes. Archived from the original on 4 March 2016. Retrieved 23 August 2017.. Retrieved 28 June 2013.
^Eric, Finseth (2011). "Shareholder Activism by Public Pension. Funds and the Rights of Dissenting. Employees under the First Amendment" (PDF). Harvard Journal of Law & Public Policy. 34 (1): 289–366. Archived from the original (PDF) on 15 May 2013. Retrieved 28 June 2013.
^ProxyDemocracy.org: "FLORIDA SBA" "ProxyDemocracy | Florida SBA". Archived from the original on 11 May 2013. Retrieved 28 June 2013. Retrieved 28 June 2013.
^State Board of Administration: "SBA Corporate Governance Principles & Proxy Voting Guidelines" [1][permanent dead link] Retrieved 28 June 2013.
^Harvard Law School Forum on Corporate Governance and Financial Regulation: "Florida SBA Supports Proxy Access and Advisory Firm Transparency" "Florida SBA Supports Proxy Access and Advisory Firm Transparency". April 2011. Archived from the original on 1 August 2014. Retrieved 28 June 2013. Retrieved 28 June 2013.
and 27 Related for: Shareholder activism information
Shareholderactivism is a form of activism in which shareholders use equity stakes in a corporation to put pressure on its management. A fairly small stake...
2016. De Jongh, Matthijs (2010). ShareholderActivism at the Dutch East India Company 1622–1625, in Origins of Shareholder Advocacy (Palgrave Macmillan,...
billion (FY 2018), has total assets of $5.1 billion. CHI practices shareholderactivism by purchasing shares in publicly traded corporations and engaging...
unions also sought to leverage pension stocks for shareholderactivism on proxy fights and shareholder resolutions. In 1978, SRI efforts by pension funds...
Taniguchi, Takako (21 June 2023). "Elevator Maker Showcases Growing ShareholderActivism in Japan". Bloomberg News. Barnes, Oliver (15 October 2023). "Activist...
to use shareholderactivism as a way to engage with major companies. It also collaborates with institutional investors to leverage shareholder influence...
businesses, and demonstrative forms of activism like rallies, street marches, strikes, sit-ins, or hunger strikes. Activism may be performed on a day-to-day...
was number 454 on the Fortune Global 500 list for 2011. The largest shareholder with 21% of the share capital is A.P. Moller Holding, the investment...
institutional investors represented by the Shareholder Rights Projects, which worked to present shareholder declassification proposals in S&P 500 annual...
Economic activism involves using economic power for change. Both conservative and liberal groups use economic activism to boycott or outbid companies...
Republic, Norway, and the Philippines. The Adrian Dominican Sisters led shareholderactivism efforts, including in the areas of executive compensation, climate...
assets under management as of June 30, 2021. CalPERS is known for its shareholderactivism; stocks placed on its "Focus List" may perform better than other...
institutional investors represented by the Shareholder Rights Projects, which worked to present shareholder declassification proposals in S&P 500 annual...
Mayne launched The Mayne Report – a website that is focused on shareholderactivism and corporate governance issues. In 1999, Mayne resigned from his...
November 2019. Klein, April and Zur, Emanuel. 2009. Entrepreneurial shareholderactivism: Hedge funds and other private investors. Journal of Finance 64(1):...
marking the first recorded expression of shareholderactivism or shareholder rebellion. ShareholderactivismShareholder oppression John C. Coffee, Jr. (October...
founded in 2001 by Barry Rosenstein. JANA engages in traditional shareholderactivism and socially responsible investing. In the 1980s Barry Rosenstein...
plan to invest in firearms manufacturers and retailers as a form of shareholder advocacy was approved by the House of Bishops during the 79th meeting...
Retrieved July 20, 2021. "Bill Ackman: what I think of GameStop and shareholderactivism". www.ii.co.uk. Retrieved July 20, 2021. English, Carleton. "Activist...
institutional investors represented by the Shareholder Rights Projects, which worked to present shareholder declassification proposals in S&P 500 annual...
A&M Activist Alert (AAA), a statistical analysis and predictor of shareholderactivism in Europe; the Banking Pulse Report, which compares the profitability...
AFL-CIO. "How to File a Shareholder Resolution" [13] ShareholderActivism [IRRC] Voorhes, Meg. "The Rising Tide of ShareholderActivism" DC: [IRRC], 2005...
another column, he dismissed shareholder critics of Fingleton, notably Brendan Burgess, and contrasted the small shareholder rebellions of eircom, Smurfit...
was completed in January 2014. In 2016, Glenview became the largest shareholder in hospital chain Tenet Healthcare with a 17.8% stake in the company...
average productivity growth). Shareholderactivism is rare despite the fact that the corporate law gives shareholders strong powers over managers. Under...
Global Information