Activists Have Changed, Their Targets Should Too

Tucker Ellis attorney Christopher J. Hewitt says it’s time for shareholder activists and companies to bury the hatchet and reconsider how they approach activism and shareholder engagement. He makes the case that, although some years ago many activist funds were bad actors, today many are making an effort to understand the companies in which they invest and suggesting positive strategic options, and “not just the standard platform of distribute cash, buy back stock, divest assets or sell the company.” The parties should establish a dialogue and collaborate, he says, and avoid destructive behavior designed to just gain or keep board seats.