Dear Chairman: Boardroom Battles and the Rise of Shareholder Activism

Gramm, a value-oriented hedge fund manager and adjunct professor at Columbia Business School, explores the history of shareholder activism from the 1920s though today in this insightful and well-written narrative. Gramm centers his study on eight shareholder letters that he views as key to the evolution of shareholder involvement and power, dedicating a chapter to each. These include Benjamin Graham’s 1927 letter to John D. Rockefeller Jr., which advocates for excess-capital distribution; Warren Buffett’s 1964 letter to American Express president and CEO Howard Clerk, a turning point in Buffett’s career; and Ross Perot’s 1985 letter to Roger Smith, chairman and CEO of General Motors, which exemplifies Perot’s candid, in-your-face style. Taken cumulatively, the letters give insight into how shareholder activism can both benefit and harm companies. Gramm’s findings will intrigue and inform history buffs and activist shareholders alike. [em]Agent: Chris Pariss Lamb, Gernert Company. (Feb.) [/em]