Prevention is Better Than Remedy
Majority of investors say governance gaps attract activists, research shows 08 July 2025
A new article by IR Magazine’s Natalie Bannerman spotlights key findings from SquareWell Partners’ latest report, “The Long and the Short of It: Institutional Investors’ Views on Activism.” The piece emphasizes that poor governance remains the leading trigger for shareholder activism, with 84% of surveyed institutional investors identifying it as the primary driver behind activist campaigns.
The article outlines the core themes of SquareWell’s research — including investor attitudes toward activism, evaluation criteria, and engagement dynamics — and illustrates how governance gaps can expose companies to activist attention. Importantly, the research reveals that while 77% of investors view activism as a valuable market force, the most common reason for withholding support from activist proposals is weak justification.
The full article can be accessed here.
