Bath & Body Works Inc has announced the addition of former banker Thomas Kuhn to its board of directors, staving off a proxy challenge from billionaire Daniel Loeb in the process.
Kuhn was recommended by Loeb’s hedge fund Third Point, which owns a 6% in the company. He is the third new face on the personal care and fragrance company’s board, and his presence was enough for Third Point to back down from nominating its own slate of directors.
Kuhn is a former lawyer and banker and currently works as an advisor for the advisory and investment firm Doorbrook LLC.
Last month, Third Point recommended Conagra Brands executive Lucy Brady, who was added to the board along with Hershey Company chief financial officer Steve Voskuil. The board currently stands at 13 members.
These changes seem to be a sign of progress for Loeb, who has been critical of Bath & Body Works’ allocation of capital, namely executive compensation he considered to be excessive.
Loeb has also been calling for more consumer goods experts on the board, including Third Point's former co-chief investment officer, a proposal the company rejected.
Shares of Bath & Body works were down 1% to $39.20 Monday afternoon.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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