NEW YORK • Bed Bath & Beyond Inc yielded to some demands of a trio of activist investors, naming an independent chairman and replacing five independent directors as the home goods company struggles to turn around sales.
Lead independent director Patrick Gaston was named independent chairman, while Harriet Edelman, Harsha Ramalingam, Andrea Weiss, Mary Winston and Ann Yerger join as new independent directors, the company said yesterday.
Co-founders and co-chairmen Warren Eisenberg and Leonard Feinstein will retire from the board as of May 1.
Legion Partners Asset Management LLC, Macellum Advisors and Ancora Advisors LLC — launched a proxy fight in March to remove CEO Steven Temares and replace the entire 12-person board.
The firm yesterday said it has had multiple discussions with the investor group and invited them to participate in the board transformation process, which the group has so far declined.
“The changes announced reflect significant shareholder input and underscore our commitment to ensuring we have best-in-class governance,” Gaston said in the statement.
The shares gained 4.1% at 8:04am in early trading in New York yesterday. — Bloomberg