How to Respond to Shareholder Activism
Treat it as an opportunity, not a threat. by Mark DesJardine

Daniel Everett
Summary.
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.
Read more on Corporate governance or related topics Boards, Investment management, Organizational change, Strategy, Operations strategy and Business communication
A version of this article appeared in the July–August 2024 issue of Harvard Business Review.
Read more on Corporate governance or related topics Boards, Investment management, Organizational change, Strategy, Operations strategy and Business communication