If institutional investors are dissatisfied with a company’s performance, they no longer have only two choices — sell the stock or oppose management. If institutional investors are serious about supporting long-term value creation, they can pursue this goal through various forms of investor engagement with the company. Then, if a hedge fund launches a proxy fight, they should vigorously participate to make sure the outcome promotes corporate growth over the next several years rather than the next few months.

via The Role of Institutional Investors in Curbing Corporate Short-Termism | CFA Institute Enterprising Investor.