How Kai Liekefett Shapes Modern Shareholder Activism & CEO Accountability

The key subject is Kai H.E. Liekefett’s role and insights in shareholder activism, set against broader market dynamics and institutional trends.

Profile & Credibility: Liekefett’s leadership at Sidley—a firm described by Chambers & Partners as the go-to defense practice in activism, handling ~150 worldwide proxy contests and ~25% of late-stage U.S. fights—positions him as a leading authority in this domain. [5] His career reflects deep involvement in both pre-fight strategy and post-settlement resolution.

Themes from the Podcast: In the December 2 podcast, Liekefett characterizes shareholder activism as something of a “soap opera,” emphasizing continual business development, constant motion, and a leadership style anchored on asking “why”—an approach that builds learning and client trust. [1] That suggests activism lawyering is not transactional but relational and requires adaptive intelligence.

Current Market Dynamics: Recent data show activism remains robust in the U.S. in 2025. For example, in H1 2025 activists secured 112 board seats via settlements—a record—leading in part due to quicker settlement times (16.5 days in Q2, down from 19 in Q1). [2][3] At the same time, overall proposals, particularly ESG or DEI‐related, are down; environmental proposals rarely pass. [8][2][3] This points to regulatory, political, and investor sentiment headwinds.

CEO & Leadership Risk: Activists are increasingly targeting CEOs directly, especially women. Between 2018 and late 2025, there were 127 CEO-targeted campaigns with women making up 8% of CEOs but 15% of CEO targets. [6] Also, data shows that CEO departures after activist encounters have almost tripled (67 in 2024 vs 24 in 2023). [2] For companies and boards, this raises risks in governance, succession planning, and leadership performance metrics.

Strategic Implications: For boards and senior management: preemptive governance reviews are essential—and engagement, clarity, and transparency likely matter more than ever. For law firms and advisors: demonstrating capability in dispute resolution, BD (business development), and messaging (“why”) is a differentiator. For investors: the shift toward settlements suggests both opportunism and a preference for early resolution over drawn-out proxy fights.

Open Questions: What are firms doing to anticipate activist demands before they escalate? How much will political/regulatory shifts (e.g., proxy advisory rules, ESG disclosure mandates) further affect the balance of power? Will activism campaigns increasingly target systemic concerns (e.g. climate risk, social issues) or continue focusing on board composition, valuation, and profitability?