Staying a step ahead in the bold new era of shareholder activism

In this episode of JP Morgan's Making Sense, host Chukur Amunna explores the rapidly evolving landscape of global shareholder activism with experts Darren Novak and Lyndon Park. The discussion reveals a surge in activist campaigns worldwide, driven by market volatility, regulatory changes, and shifting investor behavior. While the U.S. remains the epicenter of activism—with record campaign volumes and the transformative impact of the universal proxy card enabling more strategic shareholder voting—Europe and Asia-Pacific are witnessing significant changes. In Europe, activism is more behind-the-scenes, with institutional investors playing a growing role in governance pressure. Japan and South Korea are emerging as hotspots due to governance reforms, increased international ownership, and new fiduciary duties for directors, creating fertile ground for activist campaigns. The episode underscores a strategic shift: companies must now be proactive, not reactive, in managing shareholder expectations, especially around capital allocation, M&A, and board composition. The rise of private equity as a follow-up to activist campaigns—particularly in Japan—further illustrates how activism is reshaping corporate strategy globally. Key takeaways include the importance of anticipating activist approaches through robust governance, the growing influence of institutional investors as de facto activists, and the need for boards to reflect diverse, globally relevant expertise. The universal proxy card has fundamentally altered U.S. activism by enabling partial board changes and reducing the cost of conflict. Meanwhile, regulatory reforms in Japan and Korea are democratizing activism, making it more accessible and impactful. Companies must now view governance not as a compliance exercise but as a strategic lever for long-term value creation. The episode concludes with a call to action: in an era of geopolitical uncertainty and AI disruption, boardroom competence and agility are more critical than ever.