Definition of shareholder activism

The idea that investors should work to influence the running of the companies in which they invest, primarily through the casting of shareholder voting.

This activity is designed to deter poor governance that might pose a long-term threat to the profitability of the companies that shareholders invest in. This activity received a lot of exposure in 2012, in what became known as the “shareholder spring”. [1]

L&G investment arm targets pay masters
Activism needs carrots and sticks