U.K. remains Europe's busiest hub for activist investors

The U.K. remained Europe's busiest market for shareholder activism in the latest reporting period, with U.K.-listed companies accounting for 60 of Europe's 95 activist targets, according to Diligent Market Intelligence.

The figures point to a widening gap between Britain and the rest of the region. Public activist activity across Europe fell 15%, while the number of U.K. companies targeted rose 15%.

International investors played a bigger role in British campaigns during the period, with U.S.-based activists responsible for one in three U.K. targets. Domestic campaigners accounted for 40% of public approaches, suggesting overseas funds are nearing local investors in influence over U.K. boardrooms.

That shift was also visible in board appointments. U.S. activists won eight of the 25 board seats secured at U.K. target companies, up from none two years earlier.

Boardroom pressure

Mergers and acquisitions featured heavily in those campaigns. Activists made 10 demands for companies to pursue a sale and launched five efforts to block transactions, underlining how dealmaking has become a central battleground for both domestic and foreign investors.

Josh Black, Editor-in-Chief at Diligent Market Intelligence, linked the growing U.S. interest to valuation gaps and the structure of the British market.

"Foreign investors look at valuations in the U.K. market and often see a significant difference when they compare those with U.S. peers," said Josh Black, Editor-in-Chief at Diligent Market Intelligence.

"A warming M&A market, the U.K. regulatory landscape and the level of cultural alignment all combine to make it a popular jurisdiction for American activists," Black said.

The data adds to evidence that London remains the main entry point for activist funds seeking opportunities in Europe. While activism remains a feature of several major continental markets, the report suggests approaches vary sharply by country.

Continental split

In Germany, six companies faced public activist demands during the period, with healthcare and technology businesses drawing particular attention. Campaigns focused on operational changes, capital returns and M&A, as investors pressed companies on performance and leadership.

France moved in the opposite direction. No France-based company faced a public campaign in the reporting period, down from four a year earlier, suggesting private engagement remained investors' preferred route for seeking change.

In Italy, activity increased, with eight companies attracting activist attention compared with five a year earlier. Industrials were a key focus, alongside smaller healthcare and technology groups, while M&A and board representation featured prominently under the country's voto di lista system.

The report also ranked the most prominent activists operating in Europe, highlighting a market shaped by both domestic and U.S. investors. Saba Capital Management ranked first, driven by campaigns aimed at reducing net asset value discounts at closed-end funds. Harwood Capital placed second, while Amber Capital and Elliott Management shared third.

Pay scrutiny

Alongside activism trends, the findings showed rising scrutiny of the demands placed on Non-Executive Directors in the U.K. Median total fees for a FTSE 100 Non-Executive Director rose to just over GBP 87,000 in 2025, up 7% from 2024 and 19% since 2020.

The increase comes as board responsibilities expand across strategy, capital allocation, sustainability, cybersecurity and technology. The largely cash-based structure of U.K. non-executive pay is also drawing closer attention, with fewer than a dozen FTSE 100 companies including equity in remuneration packages between 2020 and 2025.

By contrast, median pay for a Non-Executive Director at an S&P 500 company in 2025 comprised USD 100,000 in cash and USD 200,000 in equity. The comparison highlights a broader divergence between U.K. and U.S. board compensation as activists become more active across the Atlantic.

The latest figures suggest Britain's public markets remain unusually open to activist intervention compared with neighbouring countries, even as overall activity in Europe softens. They also show that U.S. funds are no longer peripheral players in U.K. campaigns, but are increasingly turning pressure into board representation and strategic influence.

For listed companies, that means shareholder demands are coming from a broader pool of investors and covering a wider range of issues, from valuations and buybacks to board composition and deal strategy.