#USA #New York #Corporate Governance #shareholder activism #Women CEOs

The Disproportionate Targeting of Women CEOs by Shareholder Activism

In recent years, the landscape of shareholder activism has shifted dramatically, with a particular focus on chief executive officers (CEOs). A study conducted by The Conference Board highlights a troubling trend: female CEOs are more likely to become targets of these campaigns compared to their male counterparts. Between 2018 and 2025, the research indicates that approximately 16% of the campaigns directly aimed at CEOs were targeting women, which is about two and a half times higher than expected based on women's representation among CEOs, which hovered around 6% during the same period.

Rising Activism

The report indicates that shareholder activism targeting CEOs has surged, tripling in frequency since 2018, peaking at over 400 campaigns in 2024 before tapering to around 300 in 2025. This acceleration can be attributed to various factors, particularly the heightened scrutiny of corporate leadership in a post-pandemic environment. Matteo Tonello, head of TCB Benchmarking and Analytics and coauthor of the report, stated that market volatility has led to a situation where CEOs are now seen as directly accountable for their companies' decisions and performance.

Female CEOs Under Pressure

According to the report, while women represented about 8% of CEOs in the Russell 3000 in 2025, they accounted for 15% of the activist campaigns aimed at ousting or replacing a CEO. This stark contrast raises questions regarding the underlying causes of this disparity. One prevalent theory is that activist investors may perceive female executives as being more receptive to influence, a stereotype that underscores existing societal biases about gender and leadership styles.

Research suggests that female CEOs experience dismissal rates that do not appear to correlate strongly with a firm’s performance, unlike their male counterparts, who are often retained when the company is performing well. Brian Campbell, Leader of The Conference Board Governance Sustainability Center, pointed out that the CEO often becomes a symbolic focus of shareholder discontent, linking calls for leadership changes to broader issues such as the need for better board representation or strategic repositioning.

The Landscape of Activism

The surge in shareholder activism has also led to changes in tactics and the types of actors involved. Richard Fields, head of Board Effectiveness Practice at Russell Reynolds Associates, notes that the activism environment in the U.S. has become more complex, necessitating that boards conduct regular vulnerability assessments and engage with shareholders proactively.

Additionally, the introduction of universal proxy rules in 2022 was expected to benefit activists by allowing shareholders to vote for both company and activist nominees on one ballot. However, the actual impact has been limited, as seen in the 57 proxy fights launched in 2025, where only 8 made it to a vote.

The Future of CEO Activism

As we look toward the future, it is vital for corporate boards and stakeholders to understand these dynamics to mitigate potential risks associated with shareholder activism targeting CEOs. With the landscape continuously evolving, it is essential for companies to stay informed about these trends while fostering a more inclusive environment for all executives, regardless of gender. The implications of such disparities in targeting are profound, affecting not only the individuals involved but the overall corporate governance landscape in the coming years.

In conclusion, the troubling tendency to target women CEOs in the growing arena of shareholder activism signals the need for heightened awareness and action from boards and organizations to ensure that all leaders, regardless of gender, are treated equitably in the face of scrutiny and challenge.