Davis Polk partner and West Coast M&A practice head Paul Scrivano discussed key trends and developments in shareholder activism and engagement with Financier Worldwide as a part of the publication’s September 2025 issue.

In the Q&A, Paul provided an overview of the issues that are currently driving activist campaigns and the strategies activists are using to assert influence and drive change.  He noted that “Activists have maintained a focus on total shareholder return (TSR) and operational performance, with TSR and performance weakness still being the major activist campaign attractant. Furthermore, the spotlight continues to be on operational improvements, such as cost cutting and operating expense reduction.”

When asked which emerging issues are likely to shape shareholder activism this year and beyond, Paul said, “Shareholder activism will accelerate and continue to evolve. It will likely continue trending toward faster, more public and coordinated attacks. We are seeing certain activist campaigns begin with a public announcement of a position, with little to no advance warning to the company – that tactic may be used more frequently going forward. At the same time, the persistence of swarming continues to pose challenges. Large stake building is also on the rise, giving activists an outsized presence in proxy fights. In response, companies should reassess whether a poison pill – triggering at 10 percent – might be effective to prevent a rapid accumulation of shares. If an activist rapidly accumulates in excess of 10 percent of a company’s shares and continues to buy, concerns of creeping control and the loss of a level playing field in a proxy contest begin to arise.”

“Shareholder activism and engagement,” Financier Worldwide (September 2025)

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