THE GOLDEN AGE FOR SHAREHOLDERS IS UPON US
By Joseph P . Ruehl
On April 3 , 2024 , Disney CEO Bob Iger officially fended off the attempt by institutional investor Nelson Peltz and his hedge fund Trian Partners to secure two board seats . During the affair , Disney faced pressure from proxy advisory firm Institutional Shareholder Services to support Peltz ’ s initiative . While Iger prevailed , the costliest board fight in history underscores the significant influence of shareholders in shaping the fates of corporations .
Historically , U . S . corporate power was concentrated among executives , though with varying degrees of influence held by workers and other stakeholders . However , over the last century , U . S . corporations increasingly oriented themselves around their stock price and the imperative to maximize shareholder value . This mindset has now firmly entrenched itself within U . S . corporate culture and continues to shape their decisions and priorities .
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