Activist investors had busiest quarter ever, launching 61 campaigns

Activist investors launched a record 61 campaigns in Q3, contributing to 191 year-to-date campaigns and positioning 2025 to be the busiest year ever for activism, per Barclays data. This surge, marked by a 90% quarter-over-quarter increase in U.S. activity, has led to activists securing 98 board seats and a nearly 50% rise in U.S. settlements, alongside 25 CEO resignations, signaling heightened pressure on corporate governance and strategic execution.

Analysis

Activist investor activity surged to a record high in the third quarter, with 61 new campaigns launched globally, a dramatic increase from 36 in the same period a year ago. According to data from Barclays, this activity was heavily driven by a 90% quarter-over-quarter increase in the United States, bringing the year-to-date total to 191 campaigns and positioning 2025 to potentially become the busiest year on record, surpassing the 249 campaigns of 2018. This heightened pressure is yielding significant results for activists, who have secured 98 board seats year-to-date—a 17% annual increase—and driven a nearly 50% surge in settlements in the U.S. The impact on corporate leadership is pronounced, with 25 CEO resignations at targeted companies this year, nearing the 2024 record of 27. High-profile examples include Elliott Investment Management targeting PepsiCo (PEP), Ancora Holdings engaging with CSX (CSX), and Sachem Head pushing for changes at Performance Food (PFGC). The pressure appears effective, as evidenced by major strategic shifts such as Norfolk Southern's (NSC) agreement to be acquired, Kenvue's (KVUE) CEO replacement and strategic review, and the CEO departure at CSX. While M&A remains a primary objective for activists, related demands are trending below their four-year average, a factor attributed to a previously stalled M&A market that is now showing signs of revival.

Key Decisions for Investors

• Investors should closely monitor companies currently under activist pressure, such as PepsiCo (PEP), CSX (CSX), and Kenvue (KVUE), for potential event-driven catalysts including strategic reviews, M&A, or management changes that could unlock shareholder value.
• Given the record pace of campaigns, it is prudent to screen portfolios for underperforming companies that exhibit characteristics attractive to activists, as the broadening target landscape presents both risks of disruption and opportunities for value creation.
• Pay close attention to the revival of the M&A market, as it could accelerate the success of activist campaigns focused on strategic transactions, potentially increasing the likelihood of take-out premiums in targeted firms.
• Factor in the heightened risk of leadership instability when assessing targeted companies, as the near-record rate of CEO turnover can create short-term volatility but may also signal a precursor to significant operational and strategic improvements.