
One of the Tri-Cities’ largest employers is increasing the size of its board of directors, with a number of its current members stepping down.
As a part of an agreement with shareholders Jana Partners and Continental Grain Co., Lamb Weston will grow its board from 11 to 13 members, with four of its current directors stepping down, according to a release.
In their place will be four new directors selected by Jana and Continental and two directors mutually selected by all three companies. Additionally, new director Brad Alford, who has also served on the boards of Conagra Brands Inc. and Nestlé USA will be the new chairman of the board.
“We are pleased to have reached this agreement with JANA and Continental Grain. Following our constructive engagement with them and taking into account perspectives gleaned from discussions with additional stockholders, we are confident this outcome is in the best interests of the company and all of our shareholders,” said Mike Smith, Lamb Weston’s president and CEO, in a statement.
The changes are a result of Lamb Weston reportedly bowing to pressure from Jana and Continental to further restructure as the company seeks to come back from shrinking sales, according to Yahoo Finance.
“Jana Partners has been calling for a change in the company board’s since it took a minority stake in Lamb Weston last year and had criticized the business for what it called ‘self-inflicted mis-steps’ in terms of its performance,” Yahoo Finance reported.
Lamb Weston has 2,660 employees in Benton and Franklin counties, according to Tri-Cities Area Journal of Business’ Book of Lists data.
The potato processor abruptly closed its Connell facility last fall as part of cost-cutting measures due to lagging revenue and increased costs. The plant employed about 375 people.