Heard of Erick Jackson, if no, then you are not connected! Yes Erick Jackson is one of the few Investors who has identified the power of the net and has launched a campaign to outset the underperforming heads of corporate. His credentials are quite impressive; his last campaign had resulted in the resignation of Yahoo’s former CEO Terry Semel. How did he do it, well this is exactly what Dana Cimilluca of ‘Deal Journal’-WSJ has observed in his post “ A New Thorn in Motorola’s side”, the Post is based on Li Yuan (Deal Journal) report.
According to the blog Erick Jackson has been defined as among the “new breed of investors who are savvy about grass-root power of the internet and make activism no longer a game reserved for the wealthy….”
When Erick launched the campaign against Terry Semel he had only 96 shares but his aggressive blog posts, you tube videos got him the attention he wanted and about 100 Yahoo shareholders pledged about 2 million shares for this campaign and this resulted in the outset of Semel and some of the board members!
What is new now, well Erick has already started campaigning against Ed Zander CEO of Motorola. In this case he owns about 130 shares of Motorola stocks, and has launched a campaign against Ed both in his blog and you tube. According to the ‘Deal Journal’ about 47000 shares have already been pledged by 20 fellow Motorola share holders, all this in less than 24 hours of launching the campaign! Well the pledging has only begun and is giving a hard time for Ed.
Now the underperformers better start taking cue. I guess it must have dawned on the corporate giants that it is not the wealthy few who matter but each and every stock holder! Stock Markets have a new element to take into consideration; the new breed of tech savvy, aggressive investors who think that every single shareholder has the right to demand performance from the companies! The dawn of web 2.0- social network culture has only made the corporate get into more pressure for performance!