Think Like an Activist, Deliver Like a Leader

An article by Boston Consulting Group

Shareholder activists are more primed than ever to target CEOs whose companies deliver lower TSR than competitors with similar fundamentals. In 2025, record levels of shareholder activism contributed to 32 CEO departures in the United States alone, 16% of which were from S&P 500 firms.1

Activists aren’t drawn in by your strategy. It’s your valuation that triggers them. They ask: What assumptions are embedded in your multiple? What levers are underoptimized? What capital is misallocated?

Answering those questions starts with delivering on your quarterly commitments––but it cannot end there. Markets also demand a compelling plan for tomorrow. Consider that more than half of the investors (52%) we recently surveyed expect companies to meet EPS guidance while continuing to invest in growth. When forced to choose, 36% would prioritize growth, compared with just 12% who place greater weight on short-term performance alone.

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