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On 9 October Jamie Cameron, Managing Director joined a panel discussion at the Mergermarket M&A Forum titled “Active Investors: Changing the Game”.
The session explored the evolving landscape of shareholder activism and its growing influence on corporate governance, board decision-making, and investor relations. Speakers highlighted how activism has matured into a sophisticated, strategic, and often constructive force within today’s markets - shaping how companies engage with investors and manage long-term value creation.
Jamie’s key takeaways from the session:
1. Activism Is Now a Permanent Part of the Corporate Landscape
Shareholder activism has become a regular feature of modern markets rather than an occasional disruption. Activists are increasingly well-prepared, data-driven, and long-term in their approach. Their influence extends beyond specific transactions or short-term gains, driving boards to think strategically about value creation, accountability, and stakeholder expectations.
2. The Evolving Nature of Activism
Activism is no longer confined to aggressive campaigns or public confrontations. It can take multiple forms — from private engagement and advocacy to full-scale proxy battles. The underlying motivations may differ, but the central objective remains the same: ensuring that companies deliver sustainable value and remain aligned with shareholder interests.
3. Recognising Early Warning Signs
Activism often arises when there is a disconnect between how a company perceives its own performance and how investors view it. Weak communication, limited transparency, or underperformance against peers can all create openings for activist interest. Boards that regularly assess investor sentiment and market perceptions are better equipped to prevent such situations.
4. The Importance of Continuous Engagement
Proactive and transparent engagement with shareholders is the most effective way to reduce activism risk. Regular communication around strategy, performance, and governance helps build credibility and trust. When investors feel informed and heard, they are more likely to engage constructively rather than resort to public activism.
5. The Changing Focus of Activist Campaigns
While financial performance remains central, activism is increasingly focused on board composition, governance practices, and operational efficiency. In many cases, activists are pushing for structural improvements rather than short-term payouts. This evolution signals a broader understanding that sustainable change requires effective leadership and long-term planning.
6. Turning Activism into an Opportunity
Although activism is often viewed as a threat, it can also serve as a valuable opportunity for self-assessment. Constructive engagement with activists can lead to stronger governance, clearer strategic direction, and improved investor confidence. Companies that approach these situations with openness and a willingness to listen often emerge more resilient and aligned with their shareholders.
7. Preparedness Is Key
Boards that invest in readiness — from understanding their shareholder base to stress-testing their communication and response strategies — are best placed to navigate activism. Having a clear narrative, aligned leadership, and the ability to act decisively under pressure can make the difference between a reactive defence and a constructive dialogue.
In summary, shareholder activism is here to stay, and its influence continues to grow. Companies that prioritise transparency, proactive engagement, and strategic preparedness can turn potential challenges into opportunities to build trust, resilience, and long-term value for all stakeholders.
