Description: Carl Icahn is the grandfather of shareholder activism and a true pioneer of the strategy. While he is not slowing down at all, he recently reached an agreement with his son, Brett Icahn, to rejoin the firm as the eventual successor. Brett plans to employ his father’s favored approach of pushing companies to make changes designed to boost their stock prices, though he hasn’t ruled out friendly bets too. This is not a departure from the strategy Carl has succeeded with for many years. He can be friendly (i.e., Apple, Netflix) or he can be confrontational (i.e., Forest Labs, Biogen), often it depends on the response of management.
Date: Jan 22, 2022
Questions for discussion:
- What does the article suggest is the impact of a shareholder activist on management?
- Do you believe that activists liker Icahn bring an overall positive influence on management?