Things hid behind the shareholder activism It's the institutional investors who have pushed the campaign of activism. Trade union pension funds Three wealthy individual corporate Self-styled“social responsible”funds Proposed 90% institutional investors of the shareholder resolutions in 2011-2012
Things hid behind the shareholder activism • It’s the institutional investors who have pushed the campaign of activism. Proposed 90% of the shareholder resolutions in 2011-2012 Trade union pension funds Three wealthy individual corporate Self-styled “social responsible” funds institutional investors
The intension of these institutional investors Short-interested profits? This popular opinion is incorrect. Examples of Yahoo and J.C.Penny
The intension of these institutional investors • Short-interested profits? • This popular opinion is incorrect. • Examples of Yahoo and J.C.Penny
What do institutional investors care about? Corporate-governance issues: Majority voting in board election Executive pay Splitting the role of chairman and CEO Examples of Chesapeake Energy and Citigroup
What do institutional investors care about? • Corporate-governance issues: • Majority voting in board election • Executive pay • Splitting the role of chairman and CEO • …… • Examples of Chesapeake Energy and Citigroup