MIDVALE, Utah – Is the Bed Bath & Beyond board setting itself up to get bounced?
The Beyond Inc. board of directors has approved a proposal that would allow for the declassification of all board members. If passed by shareholders, all members of the board would be reelected on the same year rather than on staggered years. Each director of the board would then transition to an annual election in 2025.
Activist shareholder John Thaler has been pushing for a number of changes at Beyond Inc., sharply criticizing the board and the way members are compensated, among other things.
The founder of JAT Capital – which owns a 9.6% stake in Beyond Inc. – recently scored a pair of successes. Those included the ouster of former CEO Jonathan Johnson on Nov. 6 and the elevation of independent director Marcus Lemonis to co-chair of the board on Nov. 29.
The declassification proposal will be presented to shareholders at the company’s annual meeting next year. The current board voted unanimously to recommend the proposal.
“Our collective board, after discussions with various stakeholders, is focused on results and accountability in addition to the highest level of corporate governance. We take our responsibility seriously and want all shareholders to be able to opine on our performance annually,” said Lemonis.