U.K. Leads Europe in Shareholder Activism with 44% Year-on-Year Surge, Diligent Market Intelligence Reports
The United Kingdom has once again emerged as Europe’s most active hub for shareholder activism, marking a 44% year-on-year surge in targeted companies, according to the Corporate Governance in Europe 2025 report published by Diligent Market Intelligence (DMI). The report highlights that between September 2024 and August 2025, 52 U.K. companies were subject to shareholder campaigns—up sharply from 36 during the same period the previous year—signaling a renewed era of robust shareholder engagement across British boardrooms.
“The U.K. remains the primary driver of public-facing engagement in Europe, with other European markets increasingly witnessing similar strategies when behind-the-scenes efforts fail,” said Josh Black, Editor-in-Chief at Diligent Market Intelligence. “Activism in Europe now spans the full spectrum—from highly visible media campaigns to quieter private engagements. Boards should be prepared for anything as we head into what promises to be an exceptionally active annual meeting season.”
U.K. Activism Trends: Smaller Companies Targeted, Big Players Take Interest
Produced in collaboration with global law firm White & Case, the DMI report reveals a key trend: smaller-cap companies accounted for nearly 70% of all activism in the U.K. during the past year. Activists continue to perceive these companies as easier entry points for driving governance changes, capital returns, and strategic overhauls.
However, large-cap activism is also gaining momentum, particularly driven by prominent U.S.-based activist investors who are increasingly shifting their focus toward European markets. These investors, often equipped with significant capital and experience from the more mature U.S. activism landscape, are seeking untapped opportunities among undervalued European firms.
“The U.S. market for shareholder activism is far more developed, with many sophisticated and well-resourced players,” noted Tom Matthews, Partner and Head of EMEA Activism at White & Case. “For those willing to expand beyond their home base, the U.K. and Europe offer fertile ground—especially in markets where governance frameworks are evolving and valuation gaps remain attractive.”
Diverse Governance Landscapes Define Activism Across Europe
While the U.K. maintains its lead, the nature and intensity of activism vary widely across Europe, influenced by distinct corporate governance frameworks, voting mechanisms, and board election structures.
Germany has become the most hotly contested market on the continent, with activists successfully securing six board seats in the first eight months of 2025—up from four in 2024. Campaigns in Germany have largely centered on cost-cutting initiatives, operational efficiencies, and industry consolidation, reflecting growing shareholder pressure on management to drive profitability.
In Italy, the country’s unique slate voting system has provided activists with discreet yet effective avenues to influence board composition. The system allows minority shareholders to nominate directors on separate lists, facilitating incremental board turnover. Italian companies saw five activist board seats gained in early 2025, up from four in each of the previous two years, underscoring a steady upward trend.
Meanwhile, France remains relatively resistant to highly public campaigns, recording just three notable activist efforts in the first eight months of 2025. Yet the report observes a subtle shift: when private negotiations fail, French activists are increasingly opting to go public, leveraging media and investor sentiment to push for change.
Europe’s Most Influential Activist Investors
The Corporate Governance in Europe 2025 report also identifies the most impactful activist investors shaping the continent’s corporate landscape. Leading the list is Saba Capital Management, which has successfully adapted its U.S.-honed strategy targeting investment trusts to the European environment. Its campaigns have emphasized structural reform and unlocking shareholder value in undervalued entities.
Coming in second is Amber Capital, another U.S.-headquartered firm with a strong European presence—particularly in Italy. Amber’s campaigns have focused on board representation and strategic restructuring, often calling for divestitures or spin-offs to streamline operations and improve market performance.
Executive Pay Trends: Europe Surpasses London
Beyond activism, DMI’s analysis highlights an important shift in executive compensation trends. For the first time, Germany’s DAX and France’s CAC 40 have surpassed the U.K.’s FTSE 100 in median realized CEO pay. This marks a significant milestone in Europe’s evolving corporate landscape and underscores intensifying competition for top executive talent.
The finding also reflects broader concerns within London’s financial community about maintaining global competitiveness. Despite concerted efforts by U.K. companies to narrow the CEO pay gap relative to their U.S. counterparts, the data suggests that Europe’s largest economies are now setting new benchmarks for executive rewards—potentially influencing where future listings and leadership talent gravitate.
