Governance Push May Split Larger Shareholders from Activists

Corporate governance experts are watching closely the movement led by investment heavyweights such as BlackRock Inc. and Canada Pension Plan Investment Board to goad companies to manage for the long run. The initiative could lead to the unraveling of an ad hoc alliance between large shareholders and activist investors, who often trumpet governance concerns in their campaigns for corporate overhauls but who aren’t necessarily focused on long-term performance.