AM I NEXT? DANGERS OF POLITICALLY AWARE ACTIVIST INVESTORS

THE "OTHER" ACTIVISTS THAT THREATEN THE ENTERPRISE

Normally we encounter activist investors like Paul Singer's Elliott Management Corporation, an investment management firm that operates one of the largest activist funds in the world.

Their modus operandi is about what you would expect, taking a stake in the company, sending a letter to the Board of Directors suggesting changes like divesting underperforming assets, reducing headcounts, outsourcing non-critical functions, exploring the mergers, acquisitions, and possibly the sale of the company, stock buy-backs, stock splits, debt cancelation, and The end is an increased valuation of the enterprise with the sharing of cost savings by up-streaming significant dividends to investors and seeking representation on the Board itself.

Now we are seeing another type of activist, one with political motivations damaging to the company's welfare. Actions that would eliminate profitable operations to bring about political changes, often under the guise of social, environmental, or economic justice.

Consider such a group that has taken a stake in Exxon Mobil Corp and managed to place radical political actors on its Board of Directors. It appears that this insurgent group is forcing the Board to abandon future projects to eliminate or reduce profitable operations, a prepare to leave or limit the company's participation in the fossil fuel industry..And, of course, upstream any temporary savings to investors. In essence, politicizing the company and killing the golden goose, the great source of its fortunes

As with all activist investors, the risk of adverse personnel effects is amplified and increased vigilance is warranted. Red flag words in media communications include capitalism, climate change, environmental sustainability, social awareness and responsibility, justice, equity, enlightened governance, and community stakeholders..

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? IS THE HANDWRITING ON THE WALL AT TWITTER? (11/29/21)

NOVEMBER 29, 2021 — TWITTER CO-FOUNDER AND CEO JACK DORSEY PUSHED OUT THE DOOR BY ACTIVIST INVESTOR

Red flags are flying for Twitter personnel as CEO Jack Dorsey leaves the top post at Twitter to be replaced by Chief Technology Officer Parag Agrawal. Bret Taylor, Salesforce.com Inc. president and chief operating officer, was named chairman of the board.

Most major changes in senior management end in a restructuring and cost-cutting initiative.

MARCH 17, 2020 — Original post…

Historically, when an activist investor places a large bet on a company, the company’s management is on notice that they are expected to cut costs, divest under-performing business units, improve share prices, declare upstream dividends and disbursements, and buy-back shares to improve their financials. If management does not act quickly enough, they are often challenged to put representatives of the activist investor on the Board of Directors and possibly change senior management.

So what does it mean for San Francisco, California-based Twitter and its employees now that activist investor Paul Singer’s New York, City, New York-based Elliott Management has made a significant investment and is demanding changes, possibly including the removal of CEO Jack Dorsey?

In late-breaking news, it appears that a deal has been struck between Twitter and Elliot Management that would leave Jack Dorsey, but appoint two new board members, search for another independent director and repurchase $2 billion in Twitter stock giving Elliot an instant profit. $1 billion in additional funding will come from Menlo Park, California-based Silver Lake Partners, a well-known technology investment fund.

So what will happen to the employees?

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

LAYOFFS: IS THE HANDWRITING ON THE WALL AT FRANKLIN TEMPELTON & LEGG MASON?

San Mateo, California-based Franklin Resources, a major asset management and investment advisory firm, has disclosed its intention to acquire rival Baltimore, Maryland-based Legg Mason, an investment and asset management firm for $4.5billion, at the behest of activist Nelson Peltz’s Trian Partners.

Franklin Templeton plans to cut around 8% of its combined workforce after the acquisition closes. Approximately 800 employees will be immediately impacted.

Like all such acquisitions, look forward to more restructuring, elimination of duplicate functions, consolidation of operations, and the type of cost-cutting that drastically affects headcounts.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?