Activists Are Knocking: Julie Neitzel’s South Florida Business and Wealth Column
December 11, 2017
In her monthly column for South Florida Business and Wealth, WE Family Offices Partner Julie Neitzel discusses the growth in shareholder activism. She writes:
Over the years, changes in regulations and the public marketplace have prompted investors to voice their concerns in the boardroom. Shareholder activism is an established asset class with constant growth, and activist investment funds comprise an asset base in excess of $200 billion. While it might seem as though activism is a recent phenomenon, it has been underway for more than nine decades.
The first credited case of activism took place in 1927, when Benjamin Graham pressured Northern Pipeline Co. to distribute excess cash to shareholders. He ran a proxy fight to put himself on the board of directors at a time in which intervening in a company’s governance was a unique path for fund managers. Graham won his proxy battle the next year and eventually became one of Warren Buffett’s mentors.
Activism generally involves shareholders of a publicly traded company who want to instigate corporate change. That can include “light activism,” such as submission of a shareholder resolution, or “heavy activism,” which can entail changes in board members or corporate strategy.
To learn more, see the full South Florida Business and Wealth column here.
