Activist Investors Shake Up WEX, Acelyrin, and the 2025 Market Landscape

The rise of activist investors in 2025 has turned corporate boardrooms into battlegrounds, with high-stakes campaigns targeting governance failures, strategic missteps, and underperformance. WEX Inc. and Acelyrin Inc. are among the most prominent casualties, but they are far from alone. From energy giants to tech firms, activists are leveraging market volatility, regulatory shifts, and shareholder discontent to drive sweeping changes. Let’s dissect the key battles and what they mean for investors.

WEX: A Governance Revolt

WEX Inc. (NYSE: WEX), a leader in business payment solutions, faces a proxy battle led by Impactive Capital, its largest shareholder with a 7% stake. The firm accuses WEX of chronic underperformance, citing a 250 percentage-point total shareholder return (TSR) gap compared to peer Corpay, Inc. (CPAY) over 12 years.

Impactive’s campaign targets three directors:
- Jack VanWoerkom (20-year tenure), accused of board entrenchment.
- Melissa Smith (CEO and Chair), whose dual role violates governance norms.
- James Neary, a “zombie director” representing a departed shareholder.

The activist demands a shareholder director, separation of CEO and board chair roles, and operational simplification. If unsuccessful, Impactive threatens to nominate its own slate by 2026. This fight reflects a broader shift: shareholders now demand accountability, not just financial returns.

Acelyrin: A Bidding War Over Biotech’s Future

Acelyrin Inc. (Nasdaq: SLRN) is locked in a duel between its merger partner, Alumis Inc. (Nasdaq: ALMS), and Tang Capital Partners, which made an unsolicited $3-per-share bid with a Contingent Value Right (CVR) tied to future drug sales. The stakes? Acelyrin’s pipeline includes therapies for lupus and multiple sclerosis, but its stock has languished amid sector-wide headwinds.

Tang Capital, owning 5.3% of Acelyrin, argues its bid offers better upside than the Alumis merger. However, its track record—failed deals with Kezar Life Sciences and Rain Oncology—raises doubts. The outcome hinges on whether shareholders trust Tang’s agility or Alumis’ capital stability (the combined entity holds $737 million in cash).

Broader Trends: A Surge in Activism

The WEX and Acelyrin cases are microcosms of a 2025 activism boom. Barclays reports a 43% year-over-year rise in U.S. proxy contests, with activists winning 51 board seats globally in Q1—up 34% from 2024. Key drivers include:
- Political tailwinds: A Trump administration’s pro-business policies, including reduced antitrust scrutiny and SEC deregulation.
- Market volatility: Companies in energy (e.g., BP’s Elliott-led revolt), tech (Dropbox’s unspecified campaign), and healthcare face heightened scrutiny.
- Governance fatigue: Shareholders are no longer tolerating “zombie directors” or CEO-chair dual roles.

What’s at Stake for Investors?

The activist surge creates both risks and opportunities:
1. Short-term volatility: Proxy battles and contested bids can amplify stock swings. WEX’s shares, for example, dropped 12% in April 2025 amid the Impactive campaign.
2. Long-term value: Successful campaigns often unlock hidden equity. Air Products & Chemicals (APD) saw its stock rise 18% post-proxy victory, as activists won board seats and ousted the CEO.
3. Sector-specific plays: Energy and healthcare are prime targets. BP’s stock surged 9% after Elliott’s renewables reversal demand, while Acelyrin’s CVR-linked bid could incentivize long-term bets on its pipeline.

Conclusion: A New Era of Accountability

The 2025 activist wave underscores a clear message: governance matters as much as growth. For WEX, failure to adapt risks prolonged underperformance; for Acelyrin, the merger’s success hinges on whether Tang’s CVR or Alumis’ capital provides better upside.

The data speaks loudly:
- Companies with entrenched boards (e.g., WEX’s 20-year director) underperformed the S&P 400 by an average of 14% annually since 2020.
- Firms targeted by activists outperformed the S&P 500 by 6.2% in the 12 months post-campaign, per APCO’s 2025 study.

Investors should prioritize firms with agile leadership, transparent capital allocation, and shareholder-aligned governance. Those lagging in these areas—like WEX and BP—are ripe for activist pressure. As the proxy wars intensify, adapt or be disrupted.

Stay informed: Track activist campaigns and corporate governance metrics using tools like ISS Governance or Bloomberg’s activist tracker.