2025 Review of Shareholder Activism
Parsys 1
Double click here to edit Hero Media component
INVESTMENT BANKING
2025 was a record year for shareholder activism
Download the 2025 Review of Shareholder Activism.
Parsys 2
Double click here to edit Go To Section component
SUBSCRIBE
Parsys 3
US campaigns rose 23% year over year, accounting for 55% of global activity. Japan, which emerged as the second-most active region in 2024, recorded its second consecutive year of record campaigns. In contrast, Europe saw another decline, with activity down ~18% year over year.
Activity at small-cap companies continued its multi-year rise, while sector concentration remained elevated. Industrials, Healthcare, and Technology together accounted for 55% of all campaigns.
M&A activism accelerated meaningfully in the back half of the year amid a surge in dealmaking, with over half of H2 campaigns focused on M&A – the highest proportion in five years.
The environment also supported a growing interplay between activism and private equity, as activists increasingly engaged around transactions, financing structures, and strategic alternatives in situations involving prospective or existing financial sponsors.
2. Elliott leads another active year as first-time activists remain prominent
Elliott was once again the most active activist firm, responsible for five of the 10 largest campaign targets and deploying a record $19 billion in capital – averaging more than $1 billion per campaign.
A broadening group of investors now view shareholder activism as a tool to catalyse change and unlock value at public companies, providing alpha to active managers at a time when traditional stock-picking continues to lose ground to passive investors and indexing.
This is highlighted in the high number of first-time activists, who accounted for 28% of all campaign initiations, just shy of 2024’s record share.
3. CEOs in the crosshairs as activists sharpen their tactics
A volatile operating environment and rising strategic and operational demands contributed to a record level of CEO churn in 2025. 32 US CEOs resigned within one year of an activist campaign, a 38% increase over the four-year average. Five of these CEOS were at S&P 500 companies.
CEO turnover also acted as a catalyst for initiating activist campaigns with 17% of all campaigns initiated following a CEO resignation, well above historical norms.
Activists won 120 board seats globally during the year, in line with the long-term average but achieved with greater efficiency. These wins were driven by a record number of US settlements.
The improving quality of independent Director appointees may also play a part in activists’ success. 31% had prior public company CEO or CFO experience, and 60% had public company board experience, both five-year highs.
4. Regulatory developments may shift the balance of power between issuers and investors
Executive orders and policy changes at agencies such as the SEC, FTC and Department of Labor have targeted the perceived influence of proxy advisors and large, passive shareholders.
These measures are designed to address concerns about the outsized influence of proxy advisors and institutional investors in corporate governance. The extent to which the changes will shift the balance of power between shareholders and issuers remains to be seen as we head into the coming year.
Parsys 4
Double click here to edit Experts Panel Card component
About the experts
Parsys 5