Saturday, January 10, 2015

The stockholder strikes back.



Boards and executive teams often have very cozy relationships. As you have already seen through your research, a Board Chairman will also serve as a CEO of the same company. Stockholders and their interests are sometime forgotten. That's where activist investors come in. Read the following story and video on how companies respond to the presence of shareholders who try to influence or take over the board of a company.



Read the following article.

http://www.cnbc.com/id/100963166

Think: How could activist investors benefit a company? How could they hurt it?
Why have activist investors grown more influential in the past?

Discuss: Do activist investors keep CEOs on their toes or do they create a distraction?

For further reading, read more about the most famous activist investors and their target companies.

Bill Ackman
Daniel Loeb
Nelson Peltz
Carl Ichan
David Tepper
David Einhorn
John Paulson

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