National Security – The Next Frontier of Corporate Activism
Summary
The article argues that national security considerations are becoming a central theme for shareholder activists as the US government—under the Trump administration in 2025—advances an “economic security as national security” doctrine. Government actions (equity stakes, onshoring incentives and public interventions) are reshaping market incentives and creating opportunities for activists to frame campaigns around supply chains, divestments and political risk. Examples include the Department of Defense stake in MP Materials, the US investment in Intel, and Ancora’s national-security-framed campaign at U.S. Steel. Companies are advised to anticipate these pressures, prepare communications and balance competing geopolitical interests to protect shareholder value.
Key Points
- National security is emerging as a viable platform for activist campaigns, not merely rhetorical framing.
- Government interventions (equity purchases, onshoring incentives, public pressure) can rapidly change market valuations and create activist opportunities.
- Examples: DoD’s stake in MP Materials and the US taking a stake in Intel correlated with strong stock gains.
- Activists may press for supply-chain fortification, divestments or M&A redirection on national-security grounds (e.g. Ancora at U.S. Steel).
- Similar to ESG, activists will combine social/political narratives with arguments about value creation to persuade institutional investors.
- Corporate response should prioritise preparedness: anticipate issues, plan contingencies, communicate clearly and balance competing national interests.
Context and Relevance
Geopolitical tensions and an active industrial policy are changing the incentives companies face. Where ESG once provided a major activist narrative, national security is now positioned to play a similar role—sometimes overlapping with economic arguments, sometimes with political ones. For multinational firms especially, alignment with one country’s security priorities may produce gains in that market while risking retaliation or value loss elsewhere. Boards, management teams and advisers need to factor this evolving risk into strategy, investor engagement and M&A planning.
Why should I read this?
Look — if you sit in a boardroom, run strategy or manage investor relations, this isn’t just another legal memo. It flags a clear shift in activist tactics that could hit your company where it matters: valuations, transactions and operations. Read it to get ahead of the narrative, avoid reactive damage control and make smarter calls on communications and contingency planning.
Author style
Punchy: the authors cut straight to the point — national security is fast becoming an activist lever. If your company operates globally, you should treat this as a priority rather than background noise.