Some CEOs who have been targeted complain privately that activists don’t understand their businesses. “They’ve never built anything in their life, except a spreadsheet,” one said recently.
Indeed, so why would we think hedge fund managers are better qualified to make strategic decisions than boards?
Others say boards should determine the CEO. They argue that activists seek too much power given the size of their stakes, which amount to as little as 1% in some cases.
Indeed, why should boards defer to some MBA with a spreadsheet and a PowerPoint deck who owns just a percent or two of the company's stock?
