The best way to avoid being
targeted by shareholder activism is quite simply for company
directors to be their own activists, according to investment
Companies can pre-empt their arrival by following corporate
governance best practices, such as regularly refreshing the
board of directors with a focus on skills, according to
panellists at The Deal’s 2019 Corporate Governance
Europe conference in London last week.
But while the kneejerk reaction of a management team might
be to resist activists, there are a number of benefits to being
"Activism is governed by the clear motivation of wanting to
make money, and I can’t think of many human
interactions that are much clearer than that," said Thomas
Davies, senior partner at consultancy firm Kekst CNC.
"Bear in mind that once an activist shows up, they are not a
pariah – they are a representative of the shareholder
base," added Davies....