Activist Shareholders and Institutional Investors - Explained

The video discusses the evolving role of shareholders, particularly activist shareholders, in corporate governance. Traditionally passive, shareholders are now more involved in influencing management decisions due to concentrated share ownership by large entities like money funds. These funds often prioritize short-term returns, which can conflict with a corporation's long-term success. This shift has significantly altered corporate governance structures, giving shareholders a stronger voice in business operations.

What is the primary role of directors in a corporation?

How has the role of shareholders changed in recent times according to the text?

What impact do money funds have on share ownership and voting rights?

Why might short-term returns from shareholders conflict with the long-term success of a corporation?

In what ways do large activist shareholders influence corporate governance?