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    INVESTMENT BANKING | INNOVATION EDGE

    Record pace of activist campaigns continues into 2023

    13 Apr 2023

    Activist shareholders are putting more pressure on corporate boards around the world. The number of newly launched campaigns globally already has hit a new high this year, according to our Investment Banking Shareholder Advisory Group’s Q1 2023 Review of Shareholder Activism.

    Record pace of activist campaigns continues into 2023

    To receive a copy of the full report on shareholder activism in Q1 2023, please email: ShareholderAdvisoryGlobal@barclays.com

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    1. Turning up the volume

    The first three months of 2023 marked the busiest quarter for new shareholder activist campaigns, topping the previous record reached in Q1 2022.

    There were 83 new campaigns globally in Q1, a 14% increase over the 73 new campaigns during the same quarter last year.

    Activity is up in Europe and Asia, which now represent more than half of the global activity for the first time. In the U.S., however, activity is down with only 31 campaigns in Q1 2023, well below multi-year levels.

    Record pace for shareholder activism

    2. Setting their sights

    Of campaigns launched in Q1, 27% targeted Industrial, 22% targeted Technology, and 15% targeted Financial companies. Collectively, these sectors received more than 60% of all campaigns.

    Continuing a trend from 2022, large U.S. companies with market caps over $25 billion were common targets, accounting for 26% of U.S. campaigns.

    The Retail, Real Estate, and Power & Utilities sectors saw the fewest number of campaigns in Q1.

    Industrial, Technology and Financial institutions

    3. Reshaping the corporate landscape

    Activists are maintaining their demands for more M&A, even as the market for mergers and acquisitions has slowed and financing has become more difficult.

    In Q1, 44% of activist campaigns put forth M&A demands. Breakups and divestures, as well as pressure to scuttle or sweeten deals were among the most prominent themes. That’s a switch from last year when agitating for a sale was the top theme.

    M&A objectives

    4. Shaking up the board

    Activists won 47 board seats in in Q1 2023, primarily through settlements. This marks a 24% increase over Q1 2022. Demands for board changes came in 45% of all global campaigns and 68% of all U.S. campaigns.

    Increase in activist boards

    5. Changing the rules

    New universal proxy rules took effect in the U.S. in August 2022, but it’s still too early to evaluate what effect they will have. So far in 2023, there have been no examples of their effect on settlements, proxy contest outcomes or single-issue candidates.

    Meanwhile, companies and investors are still waiting for definitive guidance from the Securities and Exchange Commission on climate-disclosure rules. That guidance is due to come out later this year.

    Universal proxy impact

    Important content disclosures

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