Governance Insights 2024 A Review of Shareholder Activism in Canada for 2024: Key Decisions and Trends to Watch for in 2025
The Past Year The number of publicly listed Canadian companies subject to shareholder demands in 2024 (36 companies) reflects a 25% decline from the same period in 2023 (49 companies). The 2024 figure, however, is not far below the average for the four years preceding the pandemic (41 companies). This year’s decline in activism might be explained by the fact that the S&P/TSX Composite Index gained nearly 8% in 2023, which left fewer vulnerable targets available last year for forward-looking activists planning their campaigns for the 2024 calendar ahead. In fact, the strong resurgence of activism in 2023 was preceded by a year in which the S&P/TSX Composite Index declined by almost 9%, while the near all-time lows in activism in 2022 followed a year in which the S&P/TSX Composite Index gained almost 20%. The pattern of the last few years might suggest that market returns in one year may be an indicator of activity levels for the following year. With outsized market returns of nearly 20% delivered by the S&P/ TSX Composite Index year-to-date in 2024, we will be on the lookout to see whether stronger markets this year will yield fewer campaigns next year.
Figure 1: Number of Canadian Issuers Subject to Activist Demands (2017 – 2024/11/30)
70
60
50
40
73%
65%
30
76%
75%
78%
83%
20
67%
70%
10
35%
27%
24%
33%
25%
22%
30%
17%
0
2017
2018
2019
2020
2021
2022
2023
2024-11-30
28
44
27
30
16
18
34
28
9
16
9
6
7
9
18
8
Other Companies
Large Cap
2
Davies | dwpv.com
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