JOURNAL ARTICLE

How to Respond to Shareholder ACTIVISM.

  • Published In: Harvard Business Review, 2024, v. 102, n. 4. P. 114 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: DesJardine, Mark 3 of 3

Abstract

The article focuses on how corporate managers can effectively anticipate and respond to shareholder activism, which is increasingly prevalent and often viewed as a risk. It outlines the three main components of the activist playbook: linking company performance failures to organizational weaknesses, developing and communicating a plan of action, and crafting a compelling narrative to gain shareholder support. The article emphasizes that managers should treat activists as potential allies rather than adversaries by proactively identifying vulnerabilities, engaging constructively with activist demands, and communicating transparently with shareholders. It also highlights the growing importance of strategic communication and shareholder engagement, especially in light of regulatory changes like the universal proxy card.

Additional Information

  • Source:Harvard Business Review. 2024/07, Vol. 102, Issue 4, p114
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2024
  • ISSN:0017-8012
  • Accession Number:177779176
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