Shareholder Activism in 2025: Trends, Tactics and How Companies Can Stay Ahead

Shareholder activism, while slightly lower than in 2024, remains a powerful force shaping corporate America in 2025. According to Goldman Sachs, one in six companies in the S&P 500 currently has an activist on its register and recent data from The Conference Board and ESGAUGE shows at least 41 CEOs have exited S&P 500 companies so far this year, compared with 49 for all of 2024. This pace marks the fastest annualised CEO turnover since 2005.

Considering that alongside continuing macro-economic volatility, sector-specific pressures and shifting regulatory landscapes, activism is likely to continue rising. Preparation is key. Activists will pounce on and take advantage of any perceived areas of weakness.

Key trends in Corporate Activism in 2025:

• Activism is no longer the exclusive domain of established players 
  • First-time or occasional activists now account for two-thirds of all campaigns, signalling a democratisation and expansion of the activist universe.
• Faster settlements and more success in winning Board seats  
  • Activists won a record 112 board seats at U.S. companies in the first half of 2025, with 92% of these seats secured through settlements, a five-year high.
  • Average time to settle dropped to 16.5 days, reflecting a preference for quick resolutions over protracted public battles.
  • Companies, wary of the costs and distractions of drawn-out proxy fights, are more willing to settle quickly with activists, often before campaigns become public.
• Technology, industrials and health care accounted for 63% of campaign targets… 
  • …with activists pushing for board refreshment, operational improvements and strategic pivots.
• ‘Withhold’ campaigns have become more prevalent  
  • Often serving as a pressure tactic to force board engagement or concessions.
• Off-cycle and year-round engagement 
  • Activists are no longer confined to proxy season, engaging companies throughout the year and often disguising or delaying stake-building to avoid early detection.

Effective Defence Against Corporate Activism:

The best defence is a proactive, year-round approach that combines governance excellence, strategic communication and operational readiness.

• Active and ongoing investor engagement throughout the year 
  • Maintain consistent, open dialogue with investors, not just during proxy season or during activist campaigns to address ongoing concerns.
  • Demonstrate seriousness to engagement by undertaking perception studies and maintaining regular communication to build trust.
  • Investors who feel heard and informed are less likely to support activist campaigns.
• “Outside-in” reviews and vulnerability assessments 
  • Take a step back – if you were an investor, what would you challenge?
  • Scenario plan and look for potential weaknesses. Activists will seize on these.
• Monitor for activist interest  
  • Watch for changes in investor behaviour, the tone of engagement and ownership patters as early warning signs, even if not considered a ‘traditional’ activist.
• Board and management alignment 
  • Disunity is often exploited by activists. Ensure strong alignment between the Board and management team on strategy and governance.
  • Regular scenario planning and preparedness for activist approaches are critical.
• Board composition and succession planning 
  • Ensure the board has the right skills and diversity to align with long-term strategy.
  • Maintain an active pipeline of potential successors and avoid reactive changes.
• Have a plan for both private and public engagement 
  • Keeping conversations private isn’t always possible.
  • The company needs to be able to reach investors and key stakeholders quickly.
• Offence, not defence 
  • Boards need to be proactive and evolve the skills that are going to be required to meet the future needs of the business.
  • In a dynamic world, the challenges made by activists will change. Ensure you keep abreast of wider societal discussions and keep current. These themes will likely find their way into engagement with shareholders and proxy ballots.

Ultimately, activists have the advantage of choosing both the timing and nature of their campaigns. By adopting a proactive, campaign mindset and building support not just with investors but with all key stakeholders—from employees and unions to elected officials and customers—companies can better control the narrative and minimise disruption when activism arises.