Activist Investor Campaigns Rise Back Up to Pre-Covid LevelsResearch reveals that activist investors were busier in 2022 than in 2019—and the upward trend is likely to continue. 20 January 2023
Gavin Hinks of Board Agenda pens an article on the rise of activism, globally. Campaigns by shareholder activists look set to rise further this year after a return to pre-pandemic levels in 2022. Lazard documented 235 campaigns last year at companies with market caps of more than $500m, higher than the 209 in 2019 and approaching 2018’s 249.
Experts studying the data say activists are likely to continue targeting companies in the coming 12 months as the economic conditions remain unchanged, with increased scrutiny of board decision making. Some observers believe many companies have been sheltered by tolerant shareholders willing to give boards “grace periods” due to recent economic conditions.
“The rise of activism campaigns back to pre-pandemic levels indicates that this grace period was only temporary and we should expect the trend growth in activism (in all its forms) to continue,” says Andrew Brady, a Director at SquareWell.
The full article can be accessed here.
Activist investors are expected to launch more and bolder campaigns for change among European companies in the year ahead, advisers told Reuters, after a record number in 2023.
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