Activist Investors Making Inroads with Corporate Campaigns

Activist investors didn’t take a summer vacation this year. In fact, they logged their busiest quarter ever.

According to data from Barclays, the 61 new activist campaigns launched globally between July and September represented one more than in the prior quarter and nearly double the 36 recorded during the year-earlier period. That puts 2025 on track to be a record-setting year for shareholder activism. This year’s 191 campaigns to date have targeted 178 companies, putting the market on pace to surpass 2024’s total of 244 campaigns and the record of 249 set in 2018.

More importantly, activist investors aren’t just launching campaigns––They’re achieving results.

Notably, activists are taking aim at corporate boards of directors. More than half of all campaigns launched this year have targeted board seats, a surge from the four-year average rate of a little more than 40%. In doing so, activists have secured nearly 100 seats on corporate boards of directors this year – an increase of 17% from the same period in 2024. A growing number of campaigns are producing settlements, too. In an increase of nearly 50% from last year, activists have captured more than 40 corporate board seats through negotiated agreements.

Meanwhile, C-suite executives are finding they’re not safe from activists’ efforts. More than two dozen chief executives have resigned this year due to investor pressure. Following 27 CEO resignations last year, activists appear on track to force even more executive departures in 2025.

The recent leadership change at railroad operator CSX illustrates how activist pressure campaigns are affecting chief executives. Joe Hinrichs clashed with investor Ancora Holdings after the CEO’s search for a merger partner for the rail company proved unsuccessful. With Ancora hinting at a proxy fight, Hinrichs was replaced.

What’s driving this increased activist assertiveness? Observers attribute the rise to several explanations, including volatility in the investing markets. Additionally, some investors want companies to capitalize on what they perceive as favorable government policy opportunities.

Additionally, passive investing strategies, such as index funds, are acquiring larger equity stakes in companies. That allows small activist investors to acquire more influence over management, provided they can muster the support of other shareholders. (Think along the lines of the famous campaign waged on Exxon Mobil Corp. by the small but high-profile activist fund Engine No. 1 in 2021.)

Activist campaigns pursue various agendas. The research from Barclays indicates that about half the campaigns want their targets to improve operations. These initiatives include cost reduction and business streamlining. The CSX case offers an example of activist investors hoping to spark a company to engage in strategic mergers and acquisitions. Others want to see companies shake up their boards of directors or enact changes to their corporate governance.

Regardless of their motivations, activist investors have clearly made a significant impact this year. Furthermore, activists have identified new ways to assert their leverage over companies, such as prioritizing settlements and strategically withholding votes for specific directors. Buoyed by recent success, it’s easy to see why activist investors may get even more aggressive with their pressure campaigns in the coming years.