Patrick Gadson, partner at Sullivan & Cromwell LLP, on the latest Activist Investing Today discussed activism trends in banking in light of an explosion of new campaigns launched by HoldCo Asset Management LP, and he talked about the evolving influence of proxy advisers.

Gadson, who previously appeared on AIT in 2024, also discussed defending companies targeted by activists, including banks facing heightened campaigns.

More institutions have been reassessing their reliance on Institutional Shareholder Services Inc. and Glass, Lewis & Co. LLC, he added, noting that more asset managers are considering whether to internalize voting decisions for routine matters. Gadson cited JPMorgan Asset Management and Wells Fargo & Co. as examples.

He argued that while artificial intelligence may be employed for routine voting, contested proxy fights and M&A battles would retain a strong human element given reputational and fiduciary risks.

Gadson added that if in the future proxy advisers didn’t exist, activism would persist, though data-driven modeling and proxy solicitation strategies would evolve.

Listen to the podcast with Patrick Gadson below:

More podcasts from The Deal are available on iTunes, Spotify and on TheDeal.com.