How companies should fend of attacks from activist investors

They often take a minority stake in a market-listed firm and exploit means to put pressure on CEO

Activist investors are often presented as the bad guys of financial markets. They burst onto the scene, shout loudly their plans and can offer brutal verdicts on the performance of company bosses. Naturally, CEOs would prefer to prevent this public struggle, and the best way for a company to defend itself from these insurgents might be borrow some of their tricks.

In theory, activist investors get interested when there are easy pickings to be had; when boardrooms have become complacent or are missing opportunities. This can make activists an important part of the corporate governance of firms. They seek out possible