New Diligent Market Intelligence Report Reveals Activists are Leaning into M&A and Executive Pay Misalignment as Defining Themes for 2026

Activist investors have put M&A back at the center of their playbook, with push-to-sell demands reaching a five-year high in 2025, up 29% from 2024 and nearly double the number from 2021, according to Diligent Market Intelligence's Shareholder Activism Annual Review 2026.

In 2025, over 70 U.S.-based companies faced activist pressure to pursue strategic transactions, up from 56 in 2024, despite a slow start to the year for dealmaking activity. Globally, the pattern was similar, with a 20% increase in companies subject to M&A-focused activities.

At the same time, shareholder resistance to M&A also peaked with over 30 U.S.-based companies facing investor pushback, up from 19 in 2024, as a wider cohort of investors turned to activist tactics to oppose deals they argued had failed to meet value expectations.

“The resurgence of M&A was long-awaited and driven by a more favorable market, regulatory and financing conditions, and marks a clear shift in activist priorities after several years where other forms dominated agendas,” said Josh Black, Editor-in-Chief at Diligent Market Intelligence. “Many expect M&A to surface as one of the defining themes of 2026 as momentum continues to build.”

Beyond M&A, the report finds activists also targeted executive pay misalignment as an entry point for broader governance and strategy reforms. Of the Russell 3000 companies that failed to secure more than 50% support for their “say on pay” plans in 2024, 25% drew activist attention in 2025, with many campaigns pushing for leadership or board changes. The most common demand: remove the CEO or another board member.

U.S. settlements eclipsed proxy fights

Overall activist activity in the U.S. market eased in 2025, with 579 companies facing activist demands, down 3% from 2024, as regulatory upheaval and market volatility slowed campaigns.

As activists recalibrated their approach, settlements became the dominant path to the boardroom, accounting for 89% of all board seat gains in 2025, up from 84% in 2024. Meanwhile, proxy contests retreated to 2023 levels, with board seat wins secured through shareholder votes down by 20% year over year. Only eight activists won contested votes, while withhold campaigns emerged as a popular lower-cost lever of influence, reflecting a more targeted activist approach.

Asia strengthens position, activity in Europe softens

On the global stage, activism held steady, with the number of companies targeted reaching 1,040 in 2025, up slightly from 2024 and nearly 14% higher than 2021.

Asia hit a five-year high with 246 companies facing public demands. Japan led the region, accounting for 56% of activity as the relationship between investors and boards continued to change amid a growing willingness by investors to force disputes onto shareholder ballots rather than resolve them through private engagement.

In Europe, activist activity declined by roughly 7.5%, with just under 100 companies drawing activist attention. The U.K. remained the regional hotspot for activism, accounting for more than half of all European targets as both domestic and international activists pursued opportunities in the market.

Short campaigns hit multi-year high

Activist short campaigns reached a multi-year high in 2025, with 166 campaigns globally, up more than 55% from 2024 and with AI-focused tech stocks emerging as a common draw. The U.S. accounted for over 70% of activity, with a wave of new players entering the market for the first time.

Download the comprehensive report for a ranking of the most prolific activists and short sellers of 2025.

Join us at the Diligent Market Intelligence Stewardship Series

Key findings from the report will be presented at the Diligent Market Intelligence Stewardship Series in New York City on March 3, 2026. Reserve your spot to connect with stewardship professionals and explore the trends shaping activist campaigns.

About the report

Data from Diligent Market Intelligence’s Activism, Voting, Governance, Compensation and Activist Shorts modules run from January 1, 2025, to December 31, 2025, unless otherwise stated. The report was produced in association with Olshan Frome Wolosky, Sidley Austin, Georgeson and Marsh. Further data is available on request. For more information, please email dmi.press@diligent.com

About Diligent Market Intelligence

Diligent Market Intelligence (DMI) is a market-leading provider of shareholder activism, investor voting, and corporate governance data. Through its web application and data feeds, clients can access the most complete solution for listed company intelligence on the market, with broader and deeper insights than ever before.

About Diligent

Diligent is the AI leader in governance, risk and compliance (GRC) SaaS solutions, helping more than 1 million users and 700,000 board members to clarify risk and elevate governance. The Diligent One Platform gives practitioners, the C-Suite and the board a consolidated view of their entire GRC practice so they can more effectively manage risk, build greater resilience and make better decisions, faster. Learn more at diligent.com

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