Despite factors that might have otherwise presented challenges for activists, shareholder activism in Canada proved resilient in 2025. The passing of a year marked by geopolitical and economic uncertainty – a trend which shows no signs of abating – invites reflection on the characteristics of the Canadian activism space today: larger issuers being targeted disproportionately, with U.S.-based activists leading high-profile efforts; an increased focus on business strategy in campaigns; and the rising frequency of settlements and few contested shareholder meetings. There has also been a significant reshaping of the shareholder engagement landscape, with Glass Lewis & Co.’s retreat from benchmark voting; the U.S. administration’s executive order targeting the influence of proxy advisors; J.P. Morgan and Wells Fargo’s shift away from proxy advisors to in-house AI-assisted voting; and Exxon Mobil’s adoption of an automatic retail voting program late last summer. In this instalment of Governance Insights , we examine these trends and offer insights for both issuers and activists. The Past Year Given the strong returns delivered by the S&P/TSX Composite Index in 2024 (approximately 18.5%) 1 , we might have expected fewer vulnerable targets for activists to target in 2025. Additionally, geopolitical and economic uncertainty early in the year led to a general market slowdown and suggested a slower year for capital markets activity in general. Nonetheless, shareholder activism in Canada proved resilient in 2025, with activity levels (42 Canadian publicly listed companies subject to shareholder demands) consistent with 2024 (39 companies). Activity in the last two years remains only slightly below the average for the four years preceding the COVID-19 pandemic (45 companies). Despite an inauspicious start, 2025 ultimately delivered stellar stock market returns (approximately 27.4% on the S&P/TSX Composite Index) and witnessed a second-half revival of M&A activity. Activists were generally rewarded for their efforts, as evidenced by their clear track record of success in 2025. Indeed, activists achieved all or part of their objectives in approximately two-thirds of campaigns that sought board representation, higher than the success rate achieved by activists in the prior two years.
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Source: S&P Global.
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Governance Insights 2026
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