The Year of the Activist
A further example that mega market cap no longer serves as a moat to external investor pressure and agitation even in the extant bull market. According to Lazard’s 2018 First Half Review of Shareholder Activism, investors globally spent $40 billion targeting 136 companies thus far. This is an effort to gain board seats, oust the CEO and push for spin offs, respectively. Simultaneously, pensions and passive funds are supporting.
Now is the right time to make sure management’s strategy and the company’s governance is intact and resonating with your investors. Engage your investors in sunny days, don’t wait for the storm clouds to appear on the horizon and allow an activist to engage your holders first.