Shareholder Activism Outlook 2025

Here are some key takeaways from our experts:

Expect a Return to Traditional Activism: Our panelists highlighted a return to more traditional forms of activism, combined with a new generation of activists taking center stage. These activists are increasingly focusing on mergers, acquisitions, and transaction-related platforms as prime targets for influence, spurred in part by the market expectations created by the new administration.

“Activism Season” is Year-Round: Pat, Shaun, and Amy agreed that activism is no longer confined to a specific “season.” Shareholder pressure can build throughout the year, and companies need to stay prepared at all times. While the traditional nomination window has long been a focal point, activists are now using investor days as new opportunities to exert pressure. This shift reflects how activism isn’t just about board elections anymore—it’s about finding moments throughout the year where companies are vulnerable to public influence.

Don’t Just Play Defense: Activism defense need not only be defensive; companies can and should take a proactive approach by engaging with investors and the media on a regular basis, anticipating potential points of criticism, and preparing responses ahead of time. This offensive stance can help companies feel more in control and less reactive when activism arises. Regular tabletop exercises and knowing which advisors you should call if you are to hear from an activist are key steps in ensuring a company is never caught off guard by an activist. Additionally, our experts emphasized the importance of proactively signaling or “laying breadcrumbs” for upcoming changes in public communications. This ensures that if an activist pushes for a change the company was already planning, the company can take credit and avoid appearing to react only defensively.

Integrate Directors into IR: Finally, the panel stressed that directors should be fully involved in investor relations, rather than leaving that responsibility solely to a company’s IR team. Strong, transparent engagement with investors is crucial, and it’s not just about what’s said but when and to whom. Directors can build trust long before any pressure points emerge by clearly demonstrating the value they bring to the table and aligning their biographies with the company’s strategic goals. This level of proactive communication strengthens investor confidence and helps companies stay ahead of the curve when shareholder activism heats up.

Special thanks to Amy Lissauer from Bank of America and Shaun Mathew from Kirkland & Ellis for contributing their insights.