Why More Companies Are Fighting Back Against Activist Investors

The video discusses recent trends in corporate activism, highlighting how companies are increasingly willing to challenge activists. It explores the shift in board strategies, with boards now more proactive in engaging with shareholders. The video also examines changes in activist demands, noting a preference for independent directors due to economic concerns. It highlights that company size is no longer a defense against activism, with even high-performing companies being targeted. Finally, it looks ahead to future activism trends, emphasizing cautious approaches and addressing the issue of overboarding.

What has led to companies being more willing to fight back against activist investors?

• Regulatory changes favoring activists

• Increased confidence in their strategies

• Lack of institutional investor support

• Fear of shareholder activism

Why are activists now more willing to settle for independent directors?

• They are focusing on smaller companies

• They are facing legal challenges

• They prefer to have more control

• They want to avoid economic risks

Which type of companies are considered safe from activist campaigns?

• Public companies with high performance

• Private companies

• Large multinational corporations

• Companies with diverse boards

What is the predicted behavior of activists in the near future?

• They will aggressively pursue proxy contests

• They will focus on smaller companies

• They will be more cautious and wait for economic clarity

• They will increase their demands for board seats

What issue is being raised about directors serving on multiple boards?

• They are not committed enough

• They lack the necessary skills

• They may be overextended and less effective

• They are too focused on activism