A record number of activist investors launched campaigns against global companies in 2024 reflecting growing momentum for shareholder activism and fuelling expectations of continued growth in 2025, according to a report by Reuters citing new research by Barclays.
The report quotes Jim Rossman, Global Head of Shareholder Advisory at Barclays, as saying that: “Looking back at 2024, it feels almost as if there was a shareholder revolt”.
According to Barclays, there were some 45 first-time activists among the 160 investors, including hedge funds, that pressured companies to implement changes including strategy enhancements, operational improvements, and CEO replacements. This represents an 18% increase from 2023, when 135 investors – including 31 newcomers – pushed for corporate change.
The total number of campaigns climbed to 243 in 2024, slightly below the 2018 record of 249 but surpassing the 229 campaigns in 2023.
Investors were emboldened by significant returns, with some high-profile activist-driven campaigns yielding nearly 30% gains. By comparison, the S&P 500 rose 23% during the same period.
“Investors are no longer content to wait for promised improvements. They’re demanding immediate action,” said Rossman.
The focus of campaigns continued to shift toward operational and strategic improvements, which accounted for 26% of demands, up from 19% in 2021. Conversely, M&A-related demands dropped to 22%, compared to 43% during the 2021 global deal volume peak.
Analysts expect divestment-driven campaigns to rise in 2025, driven by regulatory changes under the Trump administration, which is anticipated to be more favourable to corporate deals.
A record 27 CEOs were replaced in 2024, up from 24 in 2023 and a four-year average of 16.
Nearly half of all campaigns were launched in the United States, with 115 campaigns in 2024 – a 6% increase from 2023. US-based activists like Elliott and Trian also pursued international opportunities, particularly in Europe and the Asia-Pacific region, with campaigns targeting companies like Tokyo Gas and Nippon Steel.
Activity in the Asia-Pacific region surged, while European campaigns slowed. The number of global campaigns jumped 67% from the third to the fourth quarter of 2024, signalling continued growth into 2025.
