Bed Bath & Beyond Co-Founders To Retire Amid Board Shuffle
Home goods retailer Bed Bath & Beyond Inc. (NASDAQ: BBBY) on Monday announced a series of changes to its board of directors composition, including the retirement of company co-founders Warren Eisenberg and Leonard Feinstein.
Due to pressure from activist investors, Bed Bath & Beyond's board of directors' will consist of 10 members, nine of which are independent. However, activist investors such as Legion Partners Asset Management, Macellum Advisors GP and Ancora Advisors declined to take part in the board transformation despite being invited to do so.
The notable board changes include:
- Eisenberg and Feinstein will assume the role of Co-Founders and Co-Chairmen Emeriti;
- Current Lead Independent Director Patrick Gaston will assume the title of Independent Chairman, effective immediately; and
- Five current independent directors will step down and replaced with Harriet Edelman, Harsha Ramalingam, Andrea Weiss, Mary Winston and Ann Yerger.
Why It's Important
Gaston said in the press release the board changes incorporates shareholder input to generate a "best-in-class governance." The board's transformation will provide accountability, transparency, and collaboration with the objective of acting in the best interest of investors.
The new board will form a "Business Transformation and Strategy Review Committee" to explore all aspects of the company's transformation, strategy and structure. The Audit Committee and Compensation Committee will also be restructured to include the appointment of committee chairs and new directors.
Bed Bath & Beyond's stock traded lower by 2.7 percent to $16.93 per share at time if publication.
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