Lazard's annual review on shareholder activism compiles and analyzes data on key activism trends globally.
Key observations from the 2018 report include:
2018 was a record-breaking year for shareholder activism
- 226 companies were targeted in 2018, as compared to 188 companies in 2017
- $65.0bn of capital deployed in 2018, up from $62.4bn in 2017
- In spite of significant market volatility, Q4 2018 was the most active Q4 on record both by campaign volume and capital deployed
- Against the backdrop of a robust M&A market, 33% of 2018 activist campaigns were M&A related
More investors are using activism as a tactic
- A record 131 investors engaged in activism in 2018, reflecting the continued expansion of activism as a tactic
- 40 “first timers” launched activist campaigns in 2018, as compared to 23 “first timers” in 2017
- Nine of the top 10 activists (by current activist position 1) invested more than $1bn in 2018 (60 new campaigns in aggregate)
Activism Is Reshaping Boardrooms
- 161 Board seats won in 2018, up 56% from 2017 and 11% higher than the previous record of 145 seats in 2016
- Activists continue to name accomplished candidates, with 27% of activist appointees having public company CEO/CFO experience
- However, only 18% of activist appointees in 2018 were female, as compared to 40% of new S&P 500 directors in 2018
Activism Has Global Reach
- Activist campaigns in Europe and APAC accounted for 23% and 12% of companies targeted, respectively
- 58 European campaigns and 30 APAC campaigns in 2018 were each record highs
Traditional Active Managers Are the “New Vocalists”
- Traditional active managers are increasingly comfortable sharing their views on major activist campaigns in private interactions with management and more public forums