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How to Respond to Shareholder Activism

Daniel Everett

Activist shareholders are often seen as villains by managers and boards. Their demands for strategic and organizational shifts—which can feel personal to managers—often challenge the soundness of a company’s strategy. In 2023, more than 23% of Russell 3000 companies identified shareholder activism as a key risk factor in their annual reports, up from 21% the previous year.

A version of this article appeared in the July–August 2024 issue of Harvard Business Review.

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