June 29 (Reuters) – Bed Bath & Beyond Inc (BBBY.O) replaced CEO Mark Triton on Wednesday as part of a management shake-up to reverse the downturn in its business, the home goods retailer said.
Shares fell 13% in pre-market trading as the company’s net sales for the first quarter fell 25%, rounding off a year of sales that fell below market expectations.
The top management regiment comes just months after activist investor and billionaire Ryan Cohen criticized the retailer for an “overly ambitious” strategy, overpaying senior executives and failing to reverse market share losses.
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Cohen, who is also chairman of GameStop Corp. (GME.N), has disapproved of Tritton’s $ 27 million compensation over the past two years, saying it is much more than what top bosses have earned in major retailers , including Macy’s (MN), Kohl’s (KSS.N) and Dollar Tree (DLTR.O).
Exterior view of Bed Bath & Beyond store in New, Michigan, USA, January 29, 2021. REUTERS / Emily Elconin
“Mr Triton must acknowledge that CEOs who receive extraordinary remuneration and seek frequent publicity also raise much higher expectations when it comes to growth and value creation for shareholders,” Cohen said in March.
The company subsequently reached an agreement with Cohen by appointing three new directors, two of whom to the committee, which is exploring opportunities for its baby products unit.
On Wednesday, he nominated the head of the strategic committee and independent director Sue Gove as Triton’s deputy on a temporary basis.
Tritton was appointed CEO in 2019 shortly after the retailer settled with another group of activist investors who criticized him for failing to adapt quickly to the changing consumer preferences for online shopping.
Bed Bath & Beyond has also replaced its chief merchandising director, Joe Harzig, with Mara Sirhal, general manager of its Harmon health and beauty stores, as it seeks to overcome supply chain problems that have plagued it for most of the pandemic.
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Report from Uday Sampat in Bengaluru; Edited by Arun Koyur
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