The activist agenda

Shareholder activism remained firmly on the corporate agenda in 2025, with activists proving resilient despite market uncertainty. Reflecting wider market trends, it was a year of two halves as year-on-year activity levels were relatively subdued in the first half of 2025, whilst the second half of the year, and the final quarter in particular, witnessed an uptick in activity – with the result that 2025 finished ahead of 2024. North America and APAC accounted for 89% of activism campaigns in 2025; meanwhile, activity in Europe was more subdued. Within Europe, the UK continues to be the most active market for activism, accounting for 53% of European campaigns (Bloomberg, 2025). 

The untold story, however, is the number of campaigns being waged in private – with these statistics representing just the tip of the iceberg.

We anticipate levels of global activism this year will continue to sustain the momentum seen in 2025, with the UK remaining the firm focus for activists within Europe.

The evolving activist playbook  

Size and profile of targets: While the majority of activist activity is focused on smaller and medium cap companies, some US-based activists are setting their sights on large cap companies (>$25bn) – notably Elliott, which launched five of the ten largest campaigns in the first nine months of 2025. In the UK, this included its high-profile campaign at BP as well as its continued campaign at Anglo-American. 

Industrials, technology and healthcare were the most active sectors, with real estate companies also being targeted at a rate significantly above four-year averages, a trend we expect to continue.

Unsurprisingly, AI is becoming increasingly prevalent in the activist toolkit; activists are utilising AI technologies to assist their reviews of potential targets and identify weak spots and opportunities. For companies, this adds further complexity to the challenge posed and raises the bar for preparedness.

First-time and occasional activists: The profile of the activist shareholder continues to evolve and diversify. While the large players and household name activists remain influential, more diverse activist investors are joining them. New players are emerging as occasional and first-time activists are often taking the lead in campaigns - with over a quarter of the funds that launched campaigns in 2025 being “first-timers” (Barclays, 2025).  

Focus of campaigns: Board and management changes remain the most prevalent campaign objective in the UK. In US boardrooms, settlement agreements with major activists such as Elliott, JANA and Starboard, are fuelling a rise in activist board seat wins. The trend of CEO (and other director) resignations following activist campaigns has also intensified, with record numbers of executives stepping down within 12 months of an activist campaign. 

Whilst US-style boardroom attrition may increase in 2026, we typically do not see battles over executive spots play out in quite the same way on this side of the Atlantic. Nevertheless, the UK’s legal and governance framework is relatively activist-friendly, including comparatively low statutory thresholds to requisition a shareholder resolution and the embedded practice of directors being subject to annual re-election.

M&A-related demands remain popular globally – and slightly elevated in the UK year-on-year. We expect these demands to continue dominating in 2026, including continued calls for spin-offs or break-ups of conglomerates, reflecting the wider trend of portfolio simplification amongst corporates. Activists are also likely to use “bumpitrage” tactics on M&A deals to push bidders to increase their offer price. 

In the US, we have seen ESG activism evolving into pro- and anti-ESG movements – with an uptick in the latter since President Trump’s re-election. We do not anticipate that this backlash will be as pronounced in the UK, but we have already seen some vocal ESG scepticism, including within Elliott’s campaign against BP. Companies are likely to face conflicting calls to action – with climate activists pushing for climate change action on the one hand, and some more traditional activists resisting ESG initiatives on the other. 

Recently, we have seen some UK-listed companies facing pressure to relocate their primary listings to the US or elsewhere, following some high-profile relocations. We expect that those demands may continue. However, the experience of some companies that have relocated (particularly with respect to the slow and uncertain process of achieving US indexation) gives targets ammunition to counter the arguments often cited by those pushing for such a move, which often hinge on the promise of higher valuations and access to greater liquidity.  

How should companies respond to the threat? 

The critical importance of preparation: The long-standing maxim of “be your own activist” remains true. Activists are generally looking for a short- to medium-term return and will push for an actionable corporate event to deliver that. Boards should consider the actionable steps or attack themes – and, crucially, how the company would rebut challenges and what defensive strategies can be used. As part of this exercise, the board should regularly stress-test its strategy and determine if adjustments are necessary, aiming always for board and management consensus. Investor relations teams should also consistently monitor research on the company and the views of proxy advisers. 

Know your register: Day to day, companies should monitor both their website for unexpected activity and share register for unusual trading patterns or signs of stakebuilding and work with the registrar as necessary to investigate who the underlying investor is where this is not clear. It is also important to have a rehearsed response plan ready to deploy in the event of an activist approach, including the critical initial engagement with the activist which can set the tone for the rest of the campaign. 

Understand your shareholders: Regular engagement with major shareholders is critical, ensuring that views are heard and that they continue to buy in to the agreed strategy and support management. Institutional shareholders are increasingly activist in their approach, so it is important to minimise the risk that they side with an activist or use a live public situation as a catalyst to voice broader discontent. 

Communication is key: In 2025, several corporates successfully waged their own campaigns in the face of activist attacks, leveraging effective shareholder communication strategies. For example, Rio Tinto shareholders rejected Palliser Capital’s proposal to shift Rio Tinto’s primary listing from London to Australia, demonstrating that a clearly communicated board strategy can be decisive in the outcome. Similarly, in the face of Saba Capital Management’s “Mind the Gap” campaign to elect its nominee directors to the boards of numerous investment trusts, the trusts mounted successful counter-campaigns to rally shareholder opposition and vote down the proposals.

Prepare for sustained campaigns: Nevertheless, even when a company wins a battle, it must remain alive to the prospect that the activist may not go away. Activists have continued their tactic of waging long, drawn out campaigns that are designed to wear down management in a war of attrition. Alongside longer campaign timelines, we have seen the growing prevalence of activist “swarms”, where multiple activists target a company concurrently. These dynamics add nuance for companies, making it more challenging to remain on the front foot when defending attacks.

The year ahead

The activism landscape is dynamic; we expect the universe of activist players to continue expanding and, particularly as new activists enter the fore, the activist playbook to keep evolving. This creates an ever-broadening spectrum of possible activist situations that companies may face in the year ahead.

Companies will be better placed to navigate the challenges of this increasingly demanding environment if they remain vigilant and proactive in their strategies, anticipating (and preparing for) possible agitation whilst continuing to cultivate strong relationships with shareholders.