Pressure on the C-suite is getting heavier. Growing profits and even climbing stock prices still may not be enough to deter an activist investor from launching a campaign. According to a study by The Conference Board, execs are feeling the strain. Burnout and stress are among the concerns cited in the study, according to the Financial Times.
Meanwhile, executives across the pond at utility company SSE are feeling that very pressure. Just days after Elliott Management publicly released a letter calling for a split of SSE’s renewables unit, SSE has fired back and “categorically concluded” that Elliott’s assessment is wrong. Elliott previously demanded two new directors. The gloves are off.
Back in New York, Engine Capital has argued for the increasingly popular move of separating a department store’s e-commerce business from its retail store. Kohl’s is the latest subject, but less than a month ago it was Macy’s under pressure from Jana Partners for that same thesis. For the activist, it’s the sum of the parts argument. For the retailers, it’s keeping the business, and a fast-growing division, together under one roof.
Have a great weekend,
Mike and Chris