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	<title>IGOPPThe Atlantic &#8211; IGOPP</title>
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		<title>Can America’s Companies Survive America’s Most Aggressive Investors?</title>
		<link>https://igopp.org/en/can-americas-companies-survive-americas-most-aggressive-investors/</link>
		<comments>https://igopp.org/en/can-americas-companies-survive-americas-most-aggressive-investors/#respond</comments>
		<pubDate>Fri, 18 Nov 2016 21:04:44 +0000</pubDate>
		<dc:creator><![CDATA[mlamnini]]></dc:creator>
				<category><![CDATA[IGOPP in the Medias]]></category>
		<category><![CDATA[IGOPP in the medias]]></category>
		<category><![CDATA[Activism]]></category>
		<category><![CDATA[Hedge funds]]></category>
		<category><![CDATA[Institutional investors]]></category>
		<category><![CDATA[Proxy Advisors]]></category>
		<category><![CDATA[Securities and Exchange Commission]]></category>
		<category><![CDATA[Stakeholders]]></category>
		<category><![CDATA[The Atlantic]]></category>
		<category><![CDATA[Value-creating governance]]></category>

		<guid isPermaLink="false">https://igopp.org/?p=6825</guid>
		<description><![CDATA[&#8220;WILMINGTON, Del.—Ron Ozer was thrilled to get a job with DuPont, the two-centuries-old chemical company, when he finished his Ph.D. from Cornell in 1990. It was the place to go for young, ambitious chemists; it offered salary and benefits so generous that some people called it “Uncle Dupey.” For 26 years, he invented things for [&#8230;]]]></description>
		<content><![CDATA["WILMINGTON, Del.—Ron Ozer was thrilled to get a job with DuPont, the two-centuries-old chemical company, when he finished his Ph.D. from Cornell in 1990. It was the place to go for young, ambitious chemists; it offered salary and benefits so generous that some people called it “Uncle Dupey.” For 26 years, he invented things for DuPont, filing patent after patent, working on renewable plastic bottles and polymers from the company’s Experimental Station, a research lab where Kevlar, Neoprene, and nylon were all invented.

Then, in January of this year, he was abruptly fired, along with hundreds of other employees at the Experimental Station, part of a company-wide wave of 1,700 layoffs, one-third of DuPont’s Delaware workforce. Globally, DuPont cut 10 percent [1] of its workforce, or 5,000 people in early 2016.

[ ... ]

But it’s activist investors who have really pushed short-term thinking and figured out how to profit from it, according to Stout. And data suggests that, on the whole, activist investors are not good for employees or for the economy. Companies targeted by activist investors saw employment drop by 4 percent between 2008 and 2013, while all companies on average grew employment nine percent, on average, according to a 2015 study [2], “Hedge Fund Activism: Preliminary Results and Some New Empirical Evidence,” by Yvan Allaire, executive chair of the Institute for Governance of Private and Public Organizations, a Canadian think tank that works on governance issues. Those who had specifically been targeted by activists advocating for cost reduction saw employment shrink 20 percent.

Of course, what this means is that these efforts undermine the livelihoods of thousands who work at these companies. As Allaire puts it, activists’ interventions are often merely a “wealth transfer to shareholders from the company’s employees.” But the problem extends even beyond those directly affected, to the health and ingenuity of the company as a whole.”

Read more [3]

[1] http://www.chicagotribune.com/business/ct-dupont-to-cut-10-percent-of-global-workforce-20151229-story.html
[2] http://www.shareholderforum.com/access/Library/20150401_Allaire.pdf
[3] https://www.theatlantic.com/business/archive/2016/11/activist-investors/506330/]]></content>
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		<title>IGOPP&#8217;s Executive Chair quoted in The Atlantic Magazine with regard to Hedge Fund Activism</title>
		<link>https://igopp.org/en/igopponatlanticmagazine/</link>
		<comments>https://igopp.org/en/igopponatlanticmagazine/#respond</comments>
		<pubDate>Fri, 18 Nov 2016 20:19:04 +0000</pubDate>
		<dc:creator><![CDATA[mlamnini]]></dc:creator>
				<category><![CDATA[Press Releases]]></category>
		<category><![CDATA[Activism]]></category>
		<category><![CDATA[Hedge funds]]></category>
		<category><![CDATA[Stakeholders]]></category>
		<category><![CDATA[The Atlantic]]></category>
		<category><![CDATA[Value-creating governance]]></category>

		<guid isPermaLink="false">https://igopp.org/?p=6810</guid>
		<description><![CDATA[IGOPP&#8217;s Executive Chair, Dr. Yvan Allaire&#8217;s study on Hedge funds Activism Hedge Fund Activism: Preliminary Results and Some New Empirical Evidence, is quoted in a recent article entitled &#8220;Can America’s Companies Survive America’s Most Aggressive Investors?&#8221; published in the Atlantic Magazine. This article discusses activist investors who are increasingly gaining control of legacy corporations, forcing them to trim payrolls [&#8230;]]]></description>
		<content><![CDATA[IGOPP's Executive Chair, Dr. Yvan Allaire's study on Hedge funds Activism Hedge Fund Activism: Preliminary Results and Some New Empirical Evidence, is quoted in a recent article entitled "Can America’s Companies Survive America’s Most Aggressive Investors?" published in the Atlantic Magazine.

This article discusses activist investors who are increasingly gaining control of legacy corporations, forcing them to trim payrolls and downsize research operations—and, quite possibly, damaging the entire economy.

To read this article, click here [1].

[1] https://www.theatlantic.com/business/archive/2016/11/activist-investors/506330/]]></content>
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