Goldman's Mehrotra on the Changing Trends in Shareholder Activism

The video discusses the increasing risk of activism for companies, highlighting the need for preparedness. It explores how activists and industries face challenges, particularly in complex sectors. The impact of economic cycles on activism strategies is examined, with a focus on resilience. The globalization of activism is a key trend, with US activists targeting companies in Europe and Asia. Challenges include differing regulatory frameworks and cultural receptivity. The risks of divestitures and spinoffs are discussed, emphasizing the need for strategic consideration. Finally, the changing dynamics among shareholders, including the rise of passive investing, are explored.

What are the implications of the shift from shareholder to stakeholder capitalism for corporate activism?

How can companies effectively respond to activist campaigns in a multi-dimensional attack?

What role does communication play in a company's defense against activist investors?