Lucy Brady, a senior executive at Conagra Brands, expands the board to 11 from 10 members. — Reuters
NEW YORK: Bath and Body Works names a veteran consumer products executive as its new director, with the specialty retailer facing pressure from hedge fund Third Point LLC to cut costs and refresh its board.
Lucy Brady, a senior executive at Conagra Brands, expands the board to 11 from 10 members.
Previously, she worked at McDonald’s Corp, where she spearheaded efforts to grow the company’s digital business. Before that, she was a managing director and senior partner at The Boston Consulting Group.
Bath and Body Works chairperson Sarah Nash said Brady would bring “expertise in global digital strategy and customer loyalty and engagement” to the company.
The appointment comes weeks after Third Point, which owns a 6% stake in the company, hinted it might push for board seats.
Last week, Third Point founder Daniel Loeb told his fund investors in a letter, seen by Reuters, that he was closely watching what was unfolding at the company and its new chief executive.
In December, Third Point announced its stake in a regulatory filing and criticised the company’s high costs, including generous executive pay.
Last week, Loeb called the December appointment of chief executive Gina Boswell, a former Unilever executive, “an encouraging first step.”
But he also said hard work lay ahead and that the stock price could climb if executives got the core business back on track.
Bath and Body Works, best known for selling soaps, candles and lotions, is valued at US$10bil (RM43.6bil).
“The real prize would be if Boswell can transform the business into a more global direct-to-consumer and personal care brand,” Loeb’s letter said.
Third Point spent an average of US$38.16 (RM166.21) per share on the stock, which is now trading at US$44.48 (RM193.73). The period for nominating directors opened last Friday.
Third Point has called for board changes at several other companies and settled with Walt Disney Co on a new director late last year.
Third Point ran a challenge at Campbell Soup in 2018, leading to a settlement days before investors were scheduled to vote on who would sit on the board.
Companies often try to stymie activists’ plans by refreshing the board and addressing some of the criticisms investors might use to persuade others to back them. — Reuters
