Activist hedge fund Jana Partners is preparing for a possible proxy battle at Lamb Weston, following a shareholder survey that revealed widespread investor dissatisfaction with the frozen potato giant’s board, according to a report by Reuters.
Jana, which holds a 7% stake in Lamb Weston, has been pushing the $8bn US-listed firm for operational improvements, capital allocation changes, and potentially a sale. After nearly seven months of engagement, the hedge fund may now seek board representation, with a nomination window open until the end of June.
In a recent letter to fellow shareholders, Jana cited findings from an investor survey it commissioned last month, which excluded its own stake. According to the results, around 50% of the company’s top 50 shareholders supported a full board overhaul, while over 80% backed a significant reshuffle of the 11-member board.
“Shareholder confidence in the Board was non-existent, with an average score of 1.3 on a scale of 1 (no confidence) to 10 (significant confidence),” the letter stated.
Jana’s Managing Partner and Portfolio Manager, Scott Ostfeld, criticised the board for what he described as “systematic failures” and the destruction of billions in shareholder value, arguing that the CEO change in January was not enough to restore credibility.
“Lamb Weston’s board cannot magically erase years of systematic failures through a perfunctory CEO change,” Ostfeld wrote, urging shareholders to engage directly with the company.
Lamb Weston has yet to publicly respond to Jana’s letter or confirm whether it will contest any board nominations. Jana declined to comment on whether it would formally pursue a proxy contest.
The activist firm has already begun shortlisting candidates, including former Lamb Weston executive chairman Timothy McLevish, as part of its preparation for a potential proxy fight.
This campaign would mark Jana’s most prominent shareholder vote since 2022, when it successfully opposed Zendesk’s planned acquisition of Momentive, the parent of SurveyMonkey. That intervention led to the deal’s collapse following widespread investor opposition.
The activist pressure comes amid a difficult stretch for Lamb Weston, whose shares are down 37% over the past 12 months.
