2023: A Record Year for Activism

According to a report by Lazard, Ltd., 2023 was a record year for the number of activist investor attacks globally, with an impressive 252 new campaigns launched. If you’re counting, that’s a seven percent increase from the previous year. This trend was observed across various regions, including Europe and Asia Pacific, with the United Kingdom and Japan leading the pack.

The types of companies targeted by activist investors were not solely limited to smaller firms or struggling businesses. On the contrary, even hotshot blue-chip companies like Walt Disney Co., Salesforce Inc. and Starbucks Corp. faced scrutiny. Activists routinely demanded changes in management, board composition or advocating for the sale of underperforming businesses.

While activists and targets typically duke it out behind closed doors, a number of high-profile battles have spilled into the public forum, adding pressure to executive teams dealing with economic challenges.

A prime example is Trian Partners seeking two board seats at Disney, leading to a contentious proxy fight between its co-founder Nelson Peltz and returning CEO Bob Iger. This illustrates the potential conflicts that can arise when activist investors attempt to influence significant decisions within large corporations.

Overall, the increasing number of activist campaigns reflects the growing influence of activist investors in the corporate landscape and their willingness to pursue changes they believe will enhance shareholder value.

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