99% of the time, that doesn't actually happen, and even when it does, it tends to amount to more of an annoyance than a serious threat. It's not like it takes the CEO's time personally to deal with an activist shareholder lawsuit. They hire a team to handle it, and things move on.
Managers are practical people. They don't optimize for rare activist shareholder cases.
Managers are practical people. They don't optimize for rare activist shareholder cases.