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    INVESTMENT BANKING | INNOVATION EDGE

    Top shareholder activism trends through Q3

    23 Nov 2023

    Shareholder activists remain active this year, despite a slump in corporate dealmaking and a challenging global economy. Barclays’ Investment Banking Shareholder Advisory Group’s review of 2023 activity tallied 159 total campaigns through the third quarter of 2023. That’s 8% higher than the four-year average of 146.

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    Top shareholder activism trends through Q3

    To receive a copy of the full report, Q3 2023 Review of Shareholder Activism, please email: ShareholderAdvisoryGlobal@barclays.com

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    1. A summer slowdown typically precedes an Autumn spike in activist campaigns

    Only 25 global campaigns were initiated in Q3, reflective of the typical “summer slowdown”.

    Historically, Q4 and Q1 bring a “seasonal spike” with campaigns rising between 49% and 123%, respectively, due to the timing of nomination windows and annual shareholder meetings.

    So far this year, European companies have drawn a rising number of campaigns, while activity in the US has been on the decline. Europe has seen 52 campaigns, up 33% from the same period last year.

    Record pace for shareholder activism

    2. Four key sectors are in activists’ crosshairs

    Nearly three-quarters of all activist campaigns targeted four sectors this year through Q3: Technology, Industrials, Consumer and Healthcare.

    Real Estate, Retail and Power & Utilities sectors have seen the fewest number of campaigns in 2023.

    M&A objectives

    3. Activists continue forcing Board changes

    Activists continue to effect change in the Boardroom. Activists won 108 Board seats through the third quarter of 2023, surpassing the 103 seats won in all of 2022. 37% of seats have been won via a final shareholder vote / proxy contest, far surpassing the 16 won in that manner in 2022.

    The total includes 20 seats won in the third quarter, despite the unofficial end of the proxy season.

    Activists continue forcing Board changes

    4. M&A drives nearly half of all activist campaigns

    M&A activity and financing markets were slower through Q3 2023, but it was not because activists were holding back on their demands.

    Through the year, 46% of all activist campaigns made M&A-focused demands, up from a four-year average of 42%.

    72% of M&A demands targeted a company break-up or the outright sale of a company.

    M&A drives nearly half of all activist campaigns

    What to expect in 2024

    The season for initiating shareholder activist campaigns is about to hit high gear with 76% of all US public company nomination windows opening between December 2023 and February 2024.

    What to expect in 2024

    With the universal proxy card entering its second full year, it will be interesting to see how issuers, activists and institutional investors respond. Non-traditional activists and gadflies may also begin to take advantage of the regulation.

    As the M&A market rebounds in 2024, more activists may seek board representation. And given the number of seats activists have won in 2023, more agitators may pursue proxy contests. 

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