This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Investors Say Activist Shareholders Have The Upper Hand Against Companies In Effectively Leveraging Social Media To Gain Support

Stocks in this article: FCN

WEST PALM BEACH, Fla., Nov. 6, 2013 /PRNewswire/ -- FTI Consulting, Inc. (NYSE: FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, today announced the preliminary results of the firm's new Digital Engagement Study among institutional investors on the use and impact of digital and social media, as conducted by the firm's Strategic Communications segment. The preliminary findings from the study underscore the proliferation of digital and social engagement by investors, shareholder activists and financial media alike and an ill-defined digital defense strategy among organizations' investor relations (IR) and corporate communications entities.

As the financial community becomes increasingly reliant upon digital communications channels, financial and corporate communications teams are being challenged to engage a cross section of audiences on shared social media platforms. Among financial audiences, IR departments commonly do not have an active role in the company's daily social media management while corporate communications functions, which typically oversee these social channels, are being forced to make real-time decisions about financial matters typically outside of their remit.

"It is clear to us that activist investors have staked out a new battleground from which to attack corporate America," said Elizabeth Saunders, Senior Managing Director and Americas Chairman of the Strategic Communications segment at FTI Consulting. " Carl Icahn may have been the first mover, but our study confirms that, going forward, we can expect more activists to exploit this gap in corporate defenses. This is a wake-up call to companies that IR and corporate communications teams can no longer operate as independent silos -- particularly in the case of social media, through which information and opinions are so rapidly generated."

The FTI Consulting study found that 80 percent of investors believe shareholder activists will increasingly leverage social media to target companies. However, only 11 percent are confident that companies are adequately prepared to defend themselves on social media platforms.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs