Union-based Bed Bath & Beyond on Friday said it reached an agreement with activist investor Ryan Cohen that will include three independent directors being appointed to the retailer’s board.
Ryan Cohen Ventures disclosed a 9.8% stake in Bed Bath & Beyond on March 7. As a result of the new agreement, the firm has agreed to abide by certain customary standstill provisions and will support the board’s full slate of directors at the annual meeting.
Marjorie Bowen, Shelly Lombard and Ben Rosenzweig will immediately join Bed Bath & Beyond’s board as new independent directors, and they will also stand for election as part of the company’s slate at the 2022 annual meeting of shareholders.
The board will temporarily expand to 14 members before reverting to 11 members following the annual meeting. The three new directors collectively bring deep expertise in capital allocation, corporate governance, strategic planning and transactions.
“The resolution announced today represents a positive outcome for all of Bed Bath’s shareholders. By refreshing the board with shareholder-designated individuals who possess capital markets acumen and transaction experience, the company is well-positioned to review alternatives for buybuy BABY. I appreciate that management and the board were willing to promptly embrace our ideas and look forward to supporting them in the year ahead,” Ryan Cohen stated.
“Our company and board have always been committed to evaluating all options to maximize long-term shareholder value, and we look forward to integrating our new directors’ ideas to drive our continued transformation,” Mark Tritton, Bed Bath & Beyond’s CEO and president, added. “Our buybuy BABY business is a tremendous asset, and we are committed to unlocking its full value. As we move forward, our goals will continue to focus on delivering value for our shareholders, enhancing experiences for our customers, executing on the transformation throughout our business and creating new and exciting opportunities for our dedicated employees across all our banners.”