Research into shareholder activism campaigns has revealed a significant disparity in targeting, finding that female Chief Executive Officers (CEOs) are disproportionately likely to face campaigns aimed at criticising their leadership or calling for their removal.
A report analysing public disclosures by Russell 3000 companies between 2018 and 2025 indicated that women accounted for 16 per cent of all CEO-targeted campaigns. This share is approximately two and a half times what would be statistically expected, given that women averaged only about 6 per cent of the CEO population in that same period, demonstrating a clear vulnerability for female leadership.
The increased focus on CEOs as direct targets comes amid a broader surge and shift in the overall shareholder activism landscape. Campaigns aimed at either ousting or replacing a CEO have seen sharp growth, rising from only five in 2018 to 39 in 2025. This vulnerability is attributed to the CEO becoming a symbolic focal point for broader campaigns seeking strategic redirection or board representation, with leaders being held directly accountable for corporate missteps, underperformance, or environmental, social, and governance (ESG) controversies.
Several academic and industry sources have explored potential explanations for this persistent gender bias in targeting. One prevailing theory suggests that activists may operate based on gender stereotypes, believing it is easier to exert influence or secure cooperation from female CEOs. Research has indicated that female leaders are more likely to communicate and cooperate with hedge fund activists, adopting a more transformational leadership style, in contrast to male leaders who tend to be more transactional or self-defensive, as found in a 2021 study on hedge fund activism by PolyU Institutional Research Archive.
A second key factor relates to performance attribution and dismissal rates. Studies have shown that female CEOs face similar dismissal probabilities regardless of their firm’s financial performance. In contrast, male CEOs are significantly less likely to be ousted when their company’s results are strong. This suggests a double standard: poor performance is more likely to be forgiven for male leaders than for their female counterparts, who face greater scrutiny irrespective of success.
This heightened vulnerability may also be linked to the persistent existence of the “glass cliff” phenomenon. This concept suggests that women are more frequently appointed to leadership positions—including the CEO role—during periods of corporate downturn or crisis, situations that inherently make the firm a more probable target for activist investors. While some research has suggested that the “glass cliff” alone cannot fully account for the observed gender effect, the tendency for female leaders to inherit challenging operating environments contributes to their higher profile in activist campaigns.
The disproportionate targeting is further influenced by the behaviour of other investors during proxy contests. Research indicates that when retail investors are forced to choose between supporting an activist or the incumbent CEO, they are more likely to support campaigns targeting female-led firms. This response is tied to stereotype-influenced judgments, where an activist is perceived as relatively more competent than a female CEO, but similarly competent to a male CEO, leading to less support for the female CEO during a dispute. This reliance on stereotypes introduces bias into shareholder decision-making, as highlighted in the Journal of Applied Psychology.
The findings collectively reveal that female executives face an additional layer of challenge and external scrutiny that is not experienced by their male peers, even after reaching the highest level of corporate hierarchy. To mitigate this threat, boards and CEOs are advised to maintain constant vigilance through vulnerability assessments, engage actively with shareholders, provide clear disclosure on strategy, and develop tested preparedness plans for dealing with activist challenges.