Investor pressure mounts: shareholder activism in Europe

March 2026  |  FEATURE | BOARDROOM INTELLIGENCE

Financier Worldwide Magazine

March 2026 Issue

Shareholder activism has become increasingly popular among investors seeking to influence corporate actions. It encompasses a range of strategies that, while never guaranteeing success, can exert meaningful pressure on management teams and boards to implement significant organisational and structural changes.

Long established in the US, shareholder activism is rapidly gaining momentum elsewhere. Across Europe, dissatisfied investors have in recent years launched a series of campaigns pressing companies for greater transparency, accountability and alignment with shareholder interests.

“We have seen a clear uptick in robust activism across European markets,” says Arne Grimme, a partner at De Brauw Blackstone Westbroek. “Italy, the UK and Germany have experienced a notable rise in public campaigns, while in the Netherlands most activism occurs behind the scenes, with public campaigns representing only a fraction of total activity.”

“Activists frequently seek board representation,” he continues. “The rationale is straightforward: a board seat provides direct influence over the core issues in their campaigns, like strategy, capital allocation, shareholder returns, M&A and operational efficiency.”

According to Diligent Market Intelligence’s ‘Corporate Governance in Europe 2025’ report, the UK is currently the most active market in Europe for shareholder activism, having recorded a 44 percent year on year increase in the number of targeted companies. Between September 2024 and August 2025, 52 UK companies faced activist campaigns compared with 36 during the same period in 2024. This demonstrates a clear rise in shareholder engagement.

The Diligent report also highlights that although smaller-cap companies made up nearly 70 percent of all UK activism, many large-cap campaigns were driven by prominent US activists who are increasingly seeking value opportunities in the European market.

Germany remains Europe’s most contested activism landscape after the UK. During the first eight months of 2025, activists secured six board seats, an increase from four in 2024. Many of these campaigns centred on improving operational efficiency, reducing costs and pursuing consolidation strategies.

Europe’s varied corporate governance regimes and differing board election mechanisms have significantly shaped these developments. Italy’s distinctive slate voting system has allowed activists to reshape boards quietly, with five seats gained during the first eight months of 2025, up from four in both 2023 and 2024.

In France, public campaigns are still relatively uncommon, with only three launched during the first eight months of 2025. However, activists have become bolder and are increasingly prepared to escalate to public initiatives when private discussions fail to deliver results.

Private over public

Despite the growing openness to public-facing campaigns in France, European activists generally begin discreetly by approaching management, other shareholders and occasionally regulators behind closed doors. Campaigns that achieve traction tend to prioritise private engagement and focus on governance or operational improvements rather than solely financial issues.

“Activism unfolds differently in Europe compared to the US,” affirms Mr Grimme. “In the Netherlands, for example, there are no proxy fights from day one and limited aggressive public campaigns. Activists first seek engagement with the chief executive and chairperson, then build on that relationship.”

Establishing this engagement is not always straightforward. “Most Dutch companies have a governance structure allowing boards to make binding nominations for their own members, who must satisfy carefully drafted profile requirements,” explains Mr Grimme. “We have seen activists attempt to influence these board profiles or individual role specifications instead.”

Legal frameworks create further complications. Dutch law requires board members to act in the best interests of the company, taking into account all stakeholders.

“There is no overriding obligation toward shareholders, a concept which US activists in particular struggle to accept,” adds Mr Grimme. “This framework makes it difficult for activists to get a seat at the table. The real threat in the Dutch context is mobilised shareholder support. Once a critical mass of shareholders turns against the company, the Dutch legal system offers boards no protection.”

Renewed focus

Following a temporary slowdown in activism during the final months of 2025 due to US tariffs, so-called ‘watch and wait’ activists are expected to return in significant numbers. Their renewed interest is likely to be driven by market volatility, increased scrutiny of chief executive remuneration and a resurgence in public to private transactions.

In its latest ‘European Activist Alert’, Alvarez & Marsal (A&M) forecasts a renewed wave of activism across Europe in 2026. Germany is viewed as having substantial value creation opportunities that are expected to trigger a rise in campaigns, particularly within the industrial, technology and materials sectors.

The UK is also expected to see a recovery in activist activity, with the consumer sector drawing particular interest. Switzerland is projected to attract growing activist attention, especially in the consumer, healthcare and technology industries. A&M additionally anticipates that France, Italy and Spain will experience increasing levels of activism, although from a lower starting point and at a more gradual pace.

“We expect shareholder activism in Europe to remain prominent,” notes Mr Grimme. “The trend toward constructive, behind the scenes engagement will likely continue, while the pressure on boards to deliver shareholder value will intensify.”

As activism continues to evolve across Europe, companies will need to remain agile, transparent and responsive to investor expectations. Those that proactively engage with shareholders and address strategic concerns early are likely to be best positioned to withstand – and even benefit from – the growing momentum behind activist involvement.

© Financier Worldwide

BY

Fraser Tennant