Ed Garden, Trian Partners
"For the better part of the last 100 years, that wasn't the case," Garden said during CNBC's "Power Lunch" on Thursday. "Public shareowners felt like if they didn't like what was happening at a company, their only option was to sell."
Garden said the shift occurred as private equity firms have started to take bigger stakes in different companies, causing a transfer of wealth from public shareowners to private equity.
"Public shareowners have watched, as private equity has taken underperforming public companies, underperforming divisions of public companies and made a fortune," Garden said.
Garden said private equity firms are more likely to get on company boards and take on active roles in a company and he said, public share-owners are beginning to "move up the "ownership mentality spectrum."