It’s easy to view activist investors as little more than bullies with calculators: They hunt in packs, force disruptive and risky changes, and use simplistic benchmarks as a call to action. And yet, executives can learn a lot from the ways that activists view their business. They also can borrow a page directly from the activist’s playbook. With a little do-it-yourself activism, senior management can make a company less vulnerable to activist pressure.
How? By making it more attractive to long-term shareholders.