Over the past six weeks, activist investors have piled on tech giant Salesforce due to a failed 12-month succession that resulted in the return of founder Marc Benioff to assume full command amid a drop in stock price. The firms include: Third Point, Elliott Investment Management, Starboard Value, Value Act, and Inclusive Capital. However, as The Wall Street Journal concluded, “It’s not yet clear what all the investors, and particularly Elliott, may want.”
Just last month, Disney CEO Bob Iger modeled a master class on how CEOs can turn back activist threats through strategic engagement. Instead of retreating under the onslaught of Nelson Peltz’s deceptive attacks, Iger beat back Trian by simply pointing to genuine facts: presenting a compelling restructuring and cost-cutting plan while refusing to concede to false narratives and refuting the false charge that Disney overpaid for Fox entertainment. Our research revealed Peltz’s own faltering performance, which had been missed by the business press. No wonder Peltz was forced to end his proxy fight before it really began.
