After months of conflict Campbell Soup Company and hedge fund Third Point, led by Daniel Loeb, announced on Nov. 27 they had reached an agreement with respect to the election of directors at Campbell’s 2018 Annual Meeting of Shareholders.
Following its Nov. 29 annual meeting, Campbell will increase the size of its Board from 12 to 14 members, adding two new, independent directors from Third Point’s proposed slate: Sarah Hofstetter, president of Comscore, and Kurt Schmidt, former director and CEO of Blue Buffalo Company, Ltd. Third Point has agreed to a 12-month standstill and certain support commitments while watching the company closely.
Third Point will also provide input into Campbell’s ongoing CEO search and a final decision regarding its permanent CEO will be made by the Campbell Board, including Hofstetter and Schmidt. Campbell will also add a third director by the May 2019 meeting of the Board and will consult with Third Point with respect to the appointment. In return, Third Point agreed to immediately withdraw its slate of director nominees and support Campbell’s slate of directors at the upcoming Annual Meeting while dismissing its litigation against Campbell and withdrawing its books and records request.
“We are pleased to have reached an agreement with Third Point that is in the best interests of Campbell shareholders, and we look forward to welcoming both Sarah and Kurt to our Board of Directors,” said Keith McLoughlin, interim President and CEO of Campbell. “We will continue to maintain an active and productive dialogue with all of our shareholders, including Third Point, as we execute our strategic plan and build a stronger and more focused company that creates long-term value for shareholders,” McLoughlin said.
“Third Point looks forward to working collaboratively with Campbell to improve value for all shareholders at this important time for the company,” said Daniel Loeb, CEO of Third Point. “We are confident Campbell will find a world-class CEO who is given the necessary support to execute on the strategy to strengthen the company, and that Sarah and Kurt will provide valuable perspectives to the Campbell Board,” Loeb said.