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Shearman & Sterling LLP 15 | Recent Shareholder Activism Trends 173 2017 2018 2019 2020 H1 2021 227 187 188 133 103 96 90 100 186 249 209 212 94 Mean: 194 Source: Lazard, H1 2021 Review of Shareholder Activism, https://www.lazard.com/media/451731/ lazards-h1-2021-review-of-shareholder-activism-vff.pdf. H2 H1 # of campaigns initiated After years of growth in shareholder activist activity, the onset of COVID-19 across the world caused a decline in shareholder activism campaigns in the spring and summer of 2020. Economic recovery in the second half of the year coincided with the end-of-year proxy season and gave rise to a renewed appetite for activist campaigns in Q4 that continued through the first half of 2021. While uncertainty remains, particularly on a regional basis due to variations in vaccination rates and the impact of new variants of COVID-19, we expect to see renewed vigor in shareholder activism to continue through the second half of 2021 and into 2022. Recent Shareholder Activism Trends George A. Casey, Scott D. Petepiece, Lara Aryani and Vita Zhu Insights SHAREHOLDER ACTIVISM IN 2020 While shareholder activism declined sharply in the spring and summer of 2020, the overall number of campaigns was lower but did not result in a significant year-over-year decline. This was in large part due to the fact that the two annual proxy seasons book-ended the market turbulence of 2020, such that many of the activist campaigns were initiated either before COVID-19 in Q2 or after the economic recovery at the end of the year. The rebound of activism continued through the first half of 2021, with activist campaigns in the U.S. accelerating at a higher pace — large-cap United States companies experienced an approximately 30% increase in the number of activist campaigns in the first half of 2021 compared to 2020 (see chart below). Notwithstanding this renewed push, activism levels remain muted compared to the 2017–2020 averages (see chart below). Nevertheless, we expect the growing momentum to continue into the second half of 2021 and into 2022. Global Annual Campaign Activity