Carl Icahn

Carl Icahn
Name	Carl Icahn
Caption	Icahn in 2011
Birth date	16 February 1936
Birth place	Queens, New York City, U.S.
Education	Princeton University (BA), New York University School of Medicine (attended)
Occupation	Investor, activist shareholder, business magnate
Known for	Shareholder activism, leveraged buyouts, corporate raider
Net worth	US$6.3 billion (March 2024)
Spouse	Liba Trejbal (m. 1979; div. 1999), Gail Golden (m. 1999)

Carl Icahn is an American investor, business magnate, and philanthropist renowned as a pioneering activist shareholder. Through his holding company Icahn Enterprises, he has engaged in high-profile battles with major corporations like TWA, Texaco, Motorola, and Apple Inc., advocating for strategic changes to unlock shareholder value. His aggressive investment strategies and corporate raider reputation have made him one of the most influential and controversial figures in modern finance and corporate governance.

Early life and education

He was born in Far Rockaway, Queens, to a family of Jewish heritage; his mother was a schoolteacher and his father was a cantor. After graduating from Far Rockaway High School, he attended Princeton University, where he earned a Bachelor of Arts in philosophy in 1957. Initially pursuing a career in medicine, he briefly attended the New York University School of Medicine before leaving to serve in the United States Army. His early professional experience included a stint as a stockbroker at Dreyfus Corporation in the 1960s, which ignited his passion for the stock market and Wall Street.

Business career

In 1968, he founded Icahn & Co., a securities firm that focused on options trading and risk arbitrage. He gained significant capital and notoriety in the late 1970s and 1980s by targeting undervalued companies, a practice that cemented his status as a leading corporate raider. In 1987, he took control of TWA in a hostile takeover, serving as its chairman until the airline filed for Chapter 11 bankruptcy in 1992. His primary vehicle, the publicly traded Icahn Enterprises (formerly American Real Estate Partners), is a diversified conglomerate with holdings in investment, energy, automotive, food packaging, and real estate.

Investment philosophy and strategies

His approach is fundamentally rooted in activist investing, where he acquires significant stakes in companies he perceives as poorly managed or undervalued. He then aggressively pressures management and the board of directors through public campaigns, proxy fights, and litigation to implement changes such as share buybacks, increased dividends, spin-offs, or outright sale. This strategy, often involving leveraged buyouts and hostile takeover attempts, aims to realize what he terms the "Icahn Lift"—a surge in a company's stock price following his investment disclosure. He has frequently criticized the prevalence of what he views as excessive corporate bureaucracy and entrenched, underperforming executive teams.

Notable corporate battles and investments

His career is marked by numerous confrontational campaigns. In the 1980s, he profited greatly from a raid on Phillips Petroleum and a battle with Texaco. In 2006, he led a dissident shareholder group against Time Warner, pushing for a breakup of the media conglomerate. Other significant engagements include pushing for the breakup of Motorola, advocating for eBay to spin off PayPal, and a successful campaign at Netflix in 2012. He built a large position in Apple Inc. and publicly urged greater capital return to shareholders. More recent targets have included Herbalife, Cheniere Energy, and Southwest Gas Holdings.

Personal life and philanthropy

He has been married twice; his first marriage to Liba Trejbal ended in divorce, and he is currently married to former gallery owner Gail Golden. He owns extensive real estate, including a mansion on Centre Island, New York, and a significant art collection. His philanthropic efforts are channeled through the Icahn School of Medicine at Mount Sinai and the Children's Rescue Fund. He has made substantial donations to Princeton University and supported charter schools through the Icahn Charter Schools network in The Bronx.

Legacy and influence

He is widely regarded as a transformative force in corporate America, having popularized and legitimized shareholder activism as a core strategy for institutional investors. His battles have forced widespread debates on shareholder rights, corporate governance, and executive compensation. While critics label him a short-term speculator, supporters credit him with disciplining management and unlocking billions in shareholder value. His career is chronicled in books like "King Icahn" and he remains a frequent subject in financial media, symbolizing the power of assertive investors to reshape major public companies.

Category:American investors Category:American billionaires Category:Activists Category:Businesspeople from New York City Category:Princeton University alumni