Here’s an excerpt from an entry on “Cooley’s M&A Blog” penned by Jamie Leigh, Sean Brownridge, Bill Roegge, Kevin Cooper, Lucas Wherry and Simon Trisk about recent shareholder activism trends and what to expect this year:
“Activists view CEO turnover as an opportunity to pursue campaigns. During the past year, 18% of US campaigns were initiated following CEO turnover, a 38% increase over the four-year average. In turn, activists infrequently make CEOs the focus of their campaigns, given the attendant complexity of proxy contests and settlements involving the removal of a company’s leader. More often, CEOs experience post-campaign pressure from activists.
In keeping with the above, 2025 was a record year for activist-driven CEO turnover, with 32 CEO resignations in the US within one year of an activist campaign, representing a 60% increase over the four-year average. Of those 32 CEOs who turned over in 2025, 16% were CEOs of companies in the S&P 500.
For example, in August, at railroad leader CSX, Ancora Advisors urged the company to pursue a merger or replace its CEO if a transaction could not be consummated “in a timely manner.” In September, the CEO left the company. Ancora quickly claimed credit for the turnover, applauding the CSX board and its appointment of the new CEO.
Numerous activists targeted Kenvue, including Starboard Value, which agreed to a cooperation agreement with the company pursuant to which three new directors were appointed to the board. Jeff Smith, Starboard’s CEO, was among the designees. Within months of the settlement, Kenvue announced a CEO transition and an ongoing review of strategic alternatives. In November, Kenvue agreed to be acquired by Kimberly-Clark at an enterprise value of approximately $48.7 billion.
A high-profile CEO departure also occurred at lululemon following public pressure from the company’s founder and former CEO, Chip Wilson. In October, Wilson took out a full-page advertisement in The Wall Street Journal titled, “lululemon: in a Nosedive.” The missive admonished the company’s board and was highly critical of Calvin McDonald’s (the company’s then-CEO) performance. In December, the company announced that McDonald would step down as both the CEO and a director at the end of January 2026. Wilson met that announcement with further criticism and concern over the board’s approach to succession planning. As of the date of this article, Wilson is pursuing a proxy contest at the company seeking the election of three new directors.
Outside the US, in February 2025, it was reported that Elliott Investment Management was engaging with BP, the energy “supermajor,” and seeking “transformative” strategic changes, including to address the company’s operational underperformance. In July, BP announced the appointment of a new chair, highlighting his track record in “operational delivery with a focus on cost efficiency, disciplined capital allocation and cash flow generation.” In December, BP announced a CEO transition, this time underscoring the new CEO’s “focus on business improvement and financial discipline.”
Regardless of activism, it is crucial that boards understand their CEO succession pathways and, when an activist appears, maintain an appropriate level of readiness for potential leadership turnover, even after a campaign has resolved.”
Authored by
Broc Romanek