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    INVESTMENT BANKING | INNOVATION EDGE

    Shareholder activism continues at record pace in 2024

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    Contributor: Jim Rossman
    26 Jul 2024

    Shareholder activists launched a record 147 campaigns in the first half of 2024, toppling the longstanding record of 143 campaigns in 2018. Our Investment Banking Shareholder Advisory team’s H1 2024 Review of Shareholder Activism reveals a growing global activist pool, shifting campaign demands and fewer proxy fight successes. Read about the four key trends that have emerged so far this year.

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    Shareholder activism continues at record pace in 2024

    To receive a copy of the full report, H1 2024 Review of Shareholder Activism, please email: ShareholderAdvisoryGlobal@barclays.com

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    1. US and Japan drive record activism

    Activist campaigns doubled in the Asia-Pacific region to 50 in the first half of this year, compared to 25 in last year’s first half.

    Most of that increase came in Japan where there were 38 campaigns versus 14 last year. The increased activity follows corporate government reforms that have attracted attention from both international and local activists.

    In the United States, activity rose 15% to 61 campaigns versus 53 in the first half of 2023. Conversely in Europe, activity slowed by 31% to 29 campaigns compared to 42 in the first half of last year.

    Record pace for shareholder activism
    M&A objectives

    2. Global activism diversifies

    Major activists made up a smaller proportion of activity in the first half. The 10 most prolific activists accounted for 33% of campaigns in the first half compared to 46% last year.

    Major activists currently account for less than one-fifth of new campaigns, the lowest rate in five years.

    This means a broader universe of activists are increasingly leading the charge, launching about 80% of new campaigns in H1 24, and broadening the global activist landscape.

    M&A objectives

    3. Companies and activists are still adapting to Universal Proxy rules

    Globally, activists won 74 board seats in the first half, down from 93 last year. 

    In the US, activists won only 11% of the seats they sought in proxy fights compared to 65% in the first half of 2023.

    This would suggest the Universal Proxy rule that allow activists to appear on a company’s proxy card have not necessarily translated into more board seats for activists, as initially imagined.

    Major activists, however, continue to win board seats at a strong clip. These activists secured 24 US board seats in the first half versus 29 during the same period last year.

    Activists continue forcing Board changes

    4. New legal issues disrupt activists

    Economic and geopolitical uncertainty seem to have reduced activists’ focus on mergers and acquisitions.

    In the first half, M&A demands comprised 36% of all new campaigns versus 42% historically. The trend was most apparent in the US, where only 42% of M&A-centered activist campaigns originated in the first half compared to 56% historically.

    Instead of pushing for deals in a complex global M&A market, activists have been pushing for more operational and strategic demands.

    Activists continue forcing Board changes

    What's next?

    Looking forward to the second half of 2024, the Investment Banking Shareholder Advisory Team will be watching to see if activist activity continues at the same rapid/accelerated pace. A changing interest rate environment could spur more deal-related activism, while the U.S. election and endemic geopolitical uncertainty could see some activists pare back activity.

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