UK shareholder activism surges
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Activist investors are increasingly targeting CEOs and securing board seats, reshaping corporate governance across the UK
Shareholder activism in the UK surged by 28% in 2024, marking a significant shift after a slowdown in 2023. The latest Diligent Market Intelligence: Shareholder Activism Annual Review 2025 report highlights the increasing influence of U.S.-based activists in Europe, driving a wave of corporate shake-ups and boardroom battles. Activists operating in Europe achieved greater success through settlements, gaining 24 board seats in 2024 compared to 11 the previous year.
According to the report, activists targeting European companies secured more board seats through negotiations and proxy battles, with the total rising from 38 in 2022 to 45 in 2024. "Europe is expected to see a new wave of growth in the shareholder activism landscape, driven by key local players and the U.S.-based activists who have turned their attention to the region in search of new opportunities," said Josh Black, Editor-in-Chief at Diligent Market Intelligence.
The report identified three key trends for boards and investors to monitor:
M&A-focused activism gains momentum
Activist investors in the U.S. are increasingly pushing for mergers and acquisitions to unlock value amid favourable economic conditions. The number of demands made at U.S. companies advocating for deals increased from 42 in 2023 to 56 in 2024, while opposition to M&A transactions dropped from 29 to 19. In Europe, demands urging companies to consider deals remained steady at 18, but opposition to M&A fell from 10 to six.
CEO turnover accelerates under activist pressure
The number of CEOs leaving U.S. companies following activist engagements nearly tripled in 2024, with 67 of the 846 departures occurring within 12 months of an activist campaign. This was a stark increase from 2023, when just 24 CEOs left under similar circumstances, representing less than 3% of the 916 total CEO departures that year.
Activists challenge low valuations in Europe and push for reforms in Japan
The UK saw a rise in activist demands in 2024, with 46 listed companies targeted over concerns about undervaluation. Activists pressed companies to consider redomiciling to markets with higher valuations. Ireland also witnessed increased activity, with eight companies facing activist campaigns compared to four in 2023. In Japan, the number of activist campaigns rose from 58 to 64, with investors leveraging the Tokyo Stock Exchange's price-to-book value mandate to push for corporate reforms.
As activists gain ground in boardrooms and executive offices, European companies are bracing for a more dynamic and challenging shareholder landscape in the year ahead.