At Their Own Peril, Management Is Underplaying the Activist Threat
SOUTHPORT, Conn., June 9, 2015 /PRNewswire/ -- Rivel Research Group today announced the release of Activism: More than a Passing Phase, a report highlighting the corporate response to the rise in shareholder activism. The report integrates the latest Rivel surveys (May 2015) among large, representative samples of North American investor relations officers (IROs) and institutional investors. It provides comprehensive perspective and insight into why activism has become so compelling to the buy-side today, and on how companies have been responding to it (some might say with a distinct lack of urgency).
Findings from the recently published report include:
- The vast majority of investors believe activism is a positive force in the equity markets, reversing a point of view held just five years ago
- Two-thirds of investors think activism will continue to increase over the next couple years
- Half of the buy-side has been contacted by an activist in the past year (3 times on average)
- 43% of these investors say the activist successfully recruited their support
- HOWEVER, IROs believe the rise in activism is NOT in the best interests of equity investors
- Most North American CEOs and CFOs are "not too concerned" about activism
- Only one-in-three companies has established a formal policy for dealing with activists
Clearly there is a great divide between the popularity of activism within the investment community and senior management's reaction to the threat. Can companies afford to be complacent? C-suite jobs may be at risk.
"This report is a strident call to action for senior corporate management," said Brian Rivel, President of Rivel Research Group. "The news today is replete with stories of C-suite executives who have disregarded the activist threat and paid the ultimate price. More than ever, management needs to understand and get in front of shareholder sentiment and treat this insight as 'must have' as opposed to 'nice to have' intelligence."
This research will be highlighted at the NIRI National Conference in Chicago from June 14th-17th (niri2015conference) and discussed in depth at Rivel's session at the conference on Tuesday, June 16.
ABOUT RIVEL RESEARCH GROUP
Gathering, analyzing and interpreting investment community feedback is our core business. Rivel Research Group specializes in delivering actionable insight based on in-depth measurements of the global investment community. Rivel's highly experienced staff provides the well-informed, unbiased and strategically relevant intelligence companies need to effectively communicate with such important constituencies as sell-side analysts, buy-side analysts, portfolio managers, the financial media and other influential audiences. The comprehensive information that Rivel supplies enables companies to evaluate performance, formulate strategy and identify opportunities to achieve corporate objectives directed toward these groups. Additional information concerning Rivel is available on its website at www.rivel.com
SOURCE Rivel Research Group
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