4. CEOs come under fire as Boards take a more critical stance

A record 27 CEOs resigned from companies targeted by activists in 2024, up from 24 in 2023 and well above the four-year average of 16. The percentage of S&P 500 CEO resignations coming in the context of activist activity has also increased threefold since 2020. 

Increased strategic and operational demands are heightening pressure on CEOs as Boards act more quickly and aggressively where they see management or strategic missteps. 

Over the past two years, 20% of activist targets saw their CEO resign within a year of campaign initiation, a much higher rate than the average annual CEO turnover in the S&P 500 index of 12%. 

Despite mega-cap companies comprising just 12% of activist campaigns, they accounted for 19% of CEO turnover.