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  • August 2015 (Revised September 2015)
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Shareholder Activists and Corporate Strategy

By: David Collis and Ashley Hartman
  • Format:Print
  • | Language:English
  • | Pages:18
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Abstract

By 2015, there had been an upsurge in activist shareholders arguing for radical changes in companies' corporate strategies. Personalities like Carl Icahn, Bill Ackman, and Daniel Loeb were feared and loathed in some quarters, celebrated in others. With nearly $120 billion in assets under management in 2014, and big players like Icahn Enterprises managing $22.3 billion, Pershing Square managing $13.4 billion, and Third Point managing $8.3 billion, activist hedge funds had become a prominent feature of the corporate landscape, escaping some of their earlier approbation as corporate raiders or, even worse, "greenmailers."
Activism covered a range of approaches—from proxy votes and demands for Board seats, to full blown takeover attempts—and sought to pressure changes on a wide range of issues—from corporate governance and executive pay, to strategic direction and excessive corporate overhead. Yet one of the most common concerned the scope of the corporation. In many cases, activists demanded the splitting up of the corporate entity, or the spinning off or sale of part of the company to another owner.

Keywords

Scope; Activist Investors; Spin-offs; Synergy; Diversification; Consolidation; Hedge Fund; Corporate Strategy

Citation

Collis, David, and Ashley Hartman. "Shareholder Activists and Corporate Strategy." Harvard Business School Case 716-403, August 2015. (Revised September 2015.)
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About The Author

David J. Collis

Strategy
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Related Work

    • August 2015 (Revised September 2015)
    • Faculty Research

    Shareholder Activists and Corporate Strategy

    By: David Collis and Ashley Hartman
Related Work
  • Shareholder Activists and Corporate Strategy By: David Collis and Ashley Hartman
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