Customers leave a Kohl’s store on November 12, 2015 in San Rafael, California.
Justin Sullivan | Getty Images News | Getty Images
Kohl’s said Wednesday it has reached an agreement with a group of activist investors who have been pushing to take control of the retailer’s board.
Two new independent directors who were appointed by investors, Margaret Jenkins and Thomas Kingsbury, will join Kohl’s board of directors at the close of the 2021 annual shareholders ’meeting, he said. Previously, Jenkins was head of marketing for Denny’s and El Pollo Loco restaurant chains, and Kingsbury previously served as CEO of Burlington Stores.
Kohl’s, with investor support, will also appoint an additional independent director, Christine Day. Day served as CEO of the Lululemon sportswear chain from 2008 to 2013.
The group of investors (Macellum Advisors, Ancora Holdings, Legion Partners Asset Management and 4010 Capital) has a combined 9.5% stake in Kohl’s.
Activists originally nominated nine candidates for Kohl’s council, but last month reduced that figure to five. Investors have advocated that Kohl’s reduce its executive compensation, eliminate inventory levels, and consider selling some of its non-core real estate.
“We are pleased to have been able to reach this constructive resolution with the company and we are confident that these changes will help promote our shared goal of creating long-term value for shareholders,” the group said in a statement on Wednesday.
Kohl’s said it received notice from current board member Steve Burd that he would retire in late August. Frank Sica, the current president, is expected to retire next year.
Kohl’s has also expanded its share repurchase plan to $ 2 billion.
Its shares increased more than 1% in the first operations. Kohl’s shares have risen nearly 50% so far. The company has a market cap of $ 9.7 billion, which has grown to be larger than that of Macy’s and Nordstrom.