Goldman Sachs 2013 Annual Report Download - page 25

23Goldman Sachs 2013 Annual Report
1FOR COMPANY
LEADERS, ACTIVIST
INVESTORS PRESENT
NEW CHALLENGES –
AND OPPORTUNITIES
According to Gene Sykes, co-head of
Global Mergers & Acquisitions at Goldman
Sachs, the rise of shareholder activism is
one of the most profound recent shifts
in corporate governance.
Q: What’s different?
A: Through proxy rules and other changes, large
shareholders have gained more power, whether
they’re seeking return on capital or trying to
influence M&A strategy.
Q: How are companies responding?
A: By understanding that the relationship has
fundamentally changed. They can no longer make
big decisions without possible pushback — or they
may be forced to make big decisions they might
not make on their own.
Q: How does it affect Goldman Sachs?
A: It’s an issue we have to help clients manage
because it affects all public companies. It’s now
at the center of M&A and other aspects of our
business.
View video
Gene Sykes explores the origins and evolution of the
activist shareholder movement. Go to: goldmansachs.com/
our-thinking/trends-in-our-business/investment-banking/
sykes/index.html
“THE WORLD IS MORE COMPLEX,
markets are more volatile,
and the economy, with each
passing year, is more global
in nature,” says Jim Esposito,
head of the EMEA Financing
Group at Goldman Sachs.
“With global interconnected-
ness on the rise, company
managers now view risk
management as a strategic
priority, spanning a variety
of markets including curren-
cies, commodities, credit
and equities.” Esposito adds
that “clients seek our advice
because risk management
is part of our DNA.”
View video
Jim Esposito on risk management.
Go to: goldmansachs.com/annual-report-
2013/jim-esposito
Risk management
has become a
C-suite issue,
driving company
leaders to seek
more sophisticated
analysis and
advice
22
NO
LEADERS, ACTIVIST
According to Gene Sykes, co-head of
Global Mergers & Acquisitions at Goldman
Sachs, the rise of shareholder activism is
one of the most profound recent shifts
in corporate governance.
Q: What’s different?
A: Through proxy rules and other changes, large
shareholders have gained more power, whether
they’re seeking return on capital or trying to
influence M&A strategy.
Q: How are companies responding?
A: By understanding that the relationship has
fundamentally changed. They can no longer make
big decisions without possible pushback — or they
may be forced to make big decisions they might
not make on their own.
Q: How does it affect Goldman Sachs?
A: It’s an issue we have to help clients manage
because it affects all public companies. It’s now
at the center of M&A and other aspects of our
business.
View video
Gene Sykes explores the origins and evolution of the
activist shareholder movement. Go to: goldmansachs.com/
our-thinking/trends-in-our-business/investment-banking/
sykes/index.html