Managerial Activism and Its Role in the Corporate Sector

While shareholder activism has drawn close attention, the activism of managers has been largely overlooked. One way CEOs may engage in activism is through collective action in business groups. This type of activism allows managers to coordinate among themselves and advocate for policies through lawsuits, public statements, and lobbying. The policies promoted may be pro-business and benefit the companies and the sectors of these CEOs. Some examples of such activism are lobbying for open trade and lower corporate taxes. The policies pursued may also be pro-manager and increase the power and private benefits of CEOs. Examples include limits on proxy … Read more