Taste discrimination or rational discrimination?
Boards with more female and ethnic minority directors attract higher levels of activist attacks from hedge funds, according to a new study.
Companies with higher levels of diversity at the top level are more likely to be targeted when their businesses run into issues because boards take longer to make decisions and are less unified, according to research from Rotterdam School of Management (RSM).
The study, which examined hedge fund campaigns in the US over a nine year period, found that companies with diverse boards are much more vulnerable to attacks compared to boards with lower levels of gender and ethnic members.
It’s rational discrimination. They’re not saying that people attack companies with such boards because they’re racist, genderist or whatever. But because mixed boards do less well under attack it is rational to attack mixed boards.
Oh, OK then.