IR Monitor – 10 December 2025

In this week’s newsletter:

• Activist campaigns more likely to target female CEOs: the FT cites research which finds that women account for only 6% of leadership roles yet attract 16% of activist attacks
• An existential threat to investor relations? Passive investing is “worse than Marxism” 
• The Securities and Exchange Commission prepares for a shift in 2026: IR Impact reports on a major 2026 agenda focused on reviving US public markets 
• Good governance may be boring, but it ensures long-term returns: Patrick Hosking warns in The Times that poor oversight has contributed to major corporate failures 
• Knives are out again for short sellers. But culling market sceptics only means the bezzle and the bubble survive longer in the view of Reuters BreakingViews
• And finally … for more than 38 years, Alex has been poking fun at companies, investors and indeed investor relations. But no more. Readers of the IR Monitor are invited to a farewell book launch,  The Last of Alex 2025, here at FTI next month 

This week’s news

Activist campaigns more likely to target female CEOs – Financial Times

Female CEOs are more likely to be targeted by activist campaigns, the Financial Times reports. New research from The Conference Board shows that although women accounted for only 6.3% of CEOs between 2018 and 2025, 15.7% of shareholder activism campaigns during that period targeted companies led by women – more than double their representation. Researchers suggest that activists are influenced by gender stereotypes, seeing women as more easily influenced or “co-operative” than men. Additionally, traits typically associated with successful leadership have a masculine bias, and may also become a target for activists due to the “glass cliff” phenomenon, where women enter leadership roles just when a company begins to decline. The question asked by The Conference Board is whether this bias is implicit or explicit for activists targeting female-led companies. In spite of disproportionate targeting, the data shows that campaigns targeting female-led companies were less likely to result in a change of CEO – a 6% success rate compared to the average 38%. 

Passive investing is “worse than Marxism” – Bloomberg

The rise of passive investing skews markets and over-rewards size, according to an AllianceBernstein note relayed by Bloomberg. The article reports concerns from active managers related to index-tracking ETFs and funds that represent the top-performing companies in a given market, like the S&P 500. Inigo Fraser Jenkins from AllianceBernstein argues that passive investing raises anti-trust concerns, creating a “less effective form of capitalism with diminished competition”. This follows a note published 10 years ago where Jenkins described passive investing as “worse than Marxism”. Disproportionate investment into index-leading companies like Apple, Microsoft, and Nvidia, creates a “dystopian symbiosis” by reinforcing their market influence according to Fraser. As over one third of the S&P 500’s value can be attributed to ten companies, this over-exposure to the same companies with increasingly less consideration over the risk that they carry is said to cause increased volatility.

The SEC expects a shift for US capital markets in 2026 – IR Impact

SEC Chair Paul Atkins used his keynote speech following the NYSE opening bell to outline his plan for the future of US capital markets. His vision centred on three key priorities: simplification, scalability and modernisation. Atkins argues that decades of expanding rules have made going public too expensive and burdensome, contributing to a decline in the number of listed companies. He emphasises that markets should support risk-taking and shared prosperity, not operating solely as a means of ‘financial plumbing.’ In order to achieve this, he supports removing unnecessary bureaucracy and redefining disclosure requirements – updating executive compensation disclosures, tailoring reporting rules to a firm’s size and maturity, and basing disclosures on financial materiality to ensure that firms only report on what truly matters to investors. The speech reflects a clear break from decades of growing ‘one-size-fits-all’ regulation, aiming to make it easier and more affordable for companies to go public. 

Good governance may be boring, but it ensures long-term returns

Patrick Hosking’s recent article in The Times highlights why good corporate governance still deeply matters. Core practices such as succession planning, CEO accountability, transparent reporting, strong risk controls & ownership rights protection are being increasingly viewed as ‘dull’ by policymakers, stock exchanges and even shareholders. Simultaneously, spectacle-style AGMs no longer serve as forums for real scrutiny, leading major companies to overlook the basics of good governance. Hosking acknowledges that concerns about excessive bureaucracy are not without merit, but suggests that the evidence is clear: companies with stronger governance deliver better long-term results. Recent corporate failures – such as Wilko, Thames Water and Thomas Cook – have shown how things can go wrong when governance is weak. Poor governance also leaves investors more exposed by diluting their voting power, increasing the chances of mismanagement and raising the risk of costly corporate collapses. Governance may be unfashionable and unexciting,  but its value is undeniable. 

Knives are out again for short sellers 

Where have all the short sellers gone? Reuters likens the endangerment of the Alpine bear in Italy to the steady regress of market ‘Bears’. Whilst recent data suggests short interest has grown over time, this merely represents “market-neutral strategies” from hedge funds placing short positions to balance out long ones. Hedge funds with net short biases have gone from 50 in 2008 to 10 today, and short campaigns have fallen 40% since 2019. The decline can be attributed to the rising costs of securities lending, alongside the disruptive influence of meme-stock trading and soaring equity markets driven by the AI boom. Hostility towards short sellers has certainly increased, with Elon Musk describing them as “value destroyers” and Palantir CEO Alex Karp likening Michael Burry’s short campaigns to “market manipulation”. In spite of declining popularity, Reuters argues that short sellers are necessary for maintaining market equilibrium. Amidst smooth-talking boardrooms and “feverish” AI valuations, market sceptics are still vital for the market to remain aware of downside risk. 

And finally… The Last of Alex 2025

You are warmly invited to join us at FTI Consulting London on Tuesday 20th January 2026 for a celebratory drinks reception marking the release of ‘The Last of Alex 2025,’ with creators Russell Taylor and Charles Peattie in attendance. Following Alex’s unexpected departure from The Daily Telegraph earlier this year, regular readers may have wondered whether a Christmas collection would even arrive – but the new collection is now on its way. While it may not be the final Alex book, this edition is expected to be the last annual drawn directly from the newspaper series. It features the concluding strips from 2024 and 2025, including Alex’s remarkable discovery that his entire world is a computer-generated simulation. The event will also celebrate Charles and Russell’s 38 years of writing the cartoon. All guests will receive a complimentary copy of the book. We look forward to welcoming you. Register here!