How companies deal with troublemakers

In order to stand up to activist investors, companies are looking for governing boards with appropriate experience

Neue Zürcher Zeitung | November 20, 2017

The Neue Zürcher Zeitung article, “How companies deal with troublemakers," quoted Russell Reynolds Associates CEO Clarke Murphy about more companies wanting governing boards who are well informed about activists. The article is excerpted below.

“Increasing numbers of companies want governing boards who are well informed about activists,” says Clarke Murphy, CEO of the executive search company Russell Reynolds Associates. The relatively new business of the mediation of governing boards who provide expertise in dealing with activist investors is currently growing very rapidly.

How do the aggressors tick?

American hedge funds and private equity firms are increasingly targeting European companies, says Murphy. This is why companies in Scandinavia, Great Britain, Germany and Switzerland have increasingly prepared themselves. They try to somehow get the chairman of a company challenged by activists or a representative from the hedge fund or private equity sector onto the governing board. “Governing boards who know exactly how financial investors tick are in demand,” says Murphy.

To read the full article in its original German​​, click here.

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How companies deal with troublemakers