Why this property giant’s shareholders staged a strategy coup

The complete corporate overhaul that Lendlease announced on Monday is something you don’t see every day. But even rarer is the total and unbridled capitulation by the board and management to a well-armed group of shareholders – you could even call it red-letter day for shareholder democracy.

Based on last week’s closing price, Lendlease shares were down 25 per cent over the past year, 55 per cent over five years and 34 per cent over 20 years. While there is nothing new in large shareholders more generally exerting pressure on the companies in which they invest, it is particularly unusual that they provide a detailed blueprint for that company.Generally, large shareholders that find fault or issues with companies will target the board and management. It is usually done behind closed doors in private meetings with the chairman or chief executive.

Qantas recently had a massive refresh of its board, and its former chief executive Alan Joyce brought forward his departure after a series of mishaps/scandals andWho could forget Rio Tinto, whose scandalous blowing-up of sacred Indigenous artworks brought down its chief executive, two other senior executives and presaged the cleaning out of most of its board?Notably, neither of these upheavals led to a major about-face in their strategy.

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