M&A and AI Shape Shareholder Activism in 2026

New Diligent Market Intelligence report finds fewer proxy fights, more negotiated boardroom gains and longer settlement timelines in the first half of 2026

New York, NY, July 28, 2026 — Shareholder activism remained resilient in the first half of 2026, with more than 400 U.S.-based companies facing activist demands for the fifth consecutive first half, according to Diligent Market Intelligence’s Proxy Season Review 2026.

The U.S. accounted for 54% of global activism activity in the period, with mergers and acquisitions (M&A) emerging as a preferred activist tool. Push-for-sale demands in the region increased by almost 50% over the six-month period, with 47 advanced. Meanwhile, the number of activist short campaigns increased by almost 32% globally in the first half of 2026, with the U.S. market accounting for 66% of that activity.

“Activists began leaning into M&A in late 2025 and carried that momentum into 2026, showing their determination to maximize returns while the dealmaking window is perceived to be open,” said Josh Black, Editor-in-Chief of Diligent Market Intelligence. “At the same time, AI is becoming a more prominent source of pressure, with investors scrutinizing not just whether companies are investing in AI, but whether boards have the oversight, discipline and execution needed to turn that investment into value.”

The market impact of AI has shaped the season, with several high-profile campaigns focused on AI integration, its role in improving efficiencies and reducing costs, and the widening gap between organizations benefitting from AI and those struggling to keep pace.

Proxy fights decline as activists secure board seats through slower-moving settlements

• Amid a fresh wave of volatility driven by geopolitical tension, the number of proxy contests at U.S.-based companies fell to 12 in the first half of 2026, down 33% on the same period in 2025 and 66% when compared to the first half of 2024.
• Activists instead secured 84 of 85 board seats through negotiated settlements rather than contested votes, compared to 88% in the same period of 2025 and 86% in the first half of 2024.
• The average time to reach a settlement rose to 36 days in the first half of 2026, compared to 16.6 days in the same period of 2025.

Fewer proposals reach the ballot as investors turn to private engagement and litigation

• The number of shareholder proposals to face a vote at U.S. annual meetings fell by more than 15% in the first half of 2026.
• Proponents increasingly tested alternative strategies, including private engagement and litigation, following the SEC’s decision to step back as arbiter of no-action requests.
• Nonetheless, two dozen shareholder proposals received majority support in the first half, of which 75% were focused on governance-related themes.

As CEO pay hits new highs, boards face simmering investor pressure for stronger guardrails on larger awards aligned with long-term value.

• Median granted CEO pay at S&P 500 companies rose nearly 8% to $18.2 million in 2025, while overall investor support for “say on pay” climbed to 90% in the first half of 2026.
• Among the 16 Russell 3000 “say on pay” plans that failed in H1 2026, the most common concern was pay-for-performance misalignment, ahead of poor disclosure and outsized awards.
• Average support for director reelections at S&P 500 companies reached 96% in the opening half of 2026, flat on the same period in 2025.

To download Proxy Season Review 2026, which also includes a rundown of the season’s most notable campaigns and trend data across Europe, Asia, Canada and Australasia, click here.

About the report 

Data from Diligent Market Intelligence’s Activism, Voting, Compensation and Activist Shorts modules run from January 1, 2026, to June 30, 2026, unless otherwise stated. The report was produced in association with Sodali & Co and Sullivan & Cromwell. Further data is available on request. For more information, please email dmi.press@diligent.com

About Diligent Market Intelligence 

Diligent Market Intelligence (DMI) is a market-leading provider of shareholder activism, investor voting, and corporate governance data. Through its web application and data feeds, clients can access the most complete solution for listed company intelligence on the market, with broader and deeper insights than ever before.

About Diligent Diligent is the AI leader in governance, risk and compliance (GRC) solutions, helping more than 1 million users and 700,000 board members to clarify risk and elevate governance. The Diligent One Platform gives practitioners, the C-suite and the board a consolidated view of their entire GRC practice so they can more effectively manage risk, build greater resilience and make better decisions, faster. Learn more at diligent.com.

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Media Contact Julia Stoyanov Marketing Communications Director, Diligent +1-604-669-4225 jhanbury@diligent.com