What CEOs can learn from activist investors

The appearance of an activist investor on a company’s share registry is often viewed warily by executives. Yet one of the biggest lessons from the rise of activist investing is that it often prompts positive action—both strategically and with regard to generating long-term value. In this interview, McKinsey’s global managing director, Dominic Barton, talks with principal Tim Koller about what CEOs can learn from activist investors and whether their growing presence may help rather than hurt. This discussion is from the video series “What happens next”—usually available only to McKinsey consultants—in which Barton has in-depth conversations with colleagues and outside experts on topics relevant to our clients.