Jeffrey Smith, the Chief Executive officer of Starboard Value has secured a seat on the board of Kenvue, as part of a settlement in the four-month proxy battle between the activist hedge fund and the consumer health company, according to a report by Reuters.
Joining Smith on the board are two independent directors: Sarah Hofstetter, President of e-commerce analytics firm Profitero; and Erica Mann, former Head of Bayer’s Consumer Health division.
While Starboard had initially nominated four candidates, the hedge fund has agreed to withdraw its slate following the agreement. The move aims to address concerns over Kenvue’s performance, particularly in its skin health and beauty segment, which includes Neutrogena and Aveeno.
Starboard and its affiliates currently own approximately 22 million shares in Kenvue, representing a 1.1% stake. In a statement, Smith reaffirmed confidence in the company, citing the strong potential of its portfolio of iconic brands and market-leading positions.
Despite the board changes, Kenvue’s stock fell nearly 2% to $23 in late-morning trading on Wednesday. Since its 2023 spinoff from Johnson & Johnson, the company has lost around 13% of its market value, now standing at $44.76bn.
This latest development underscores growing shareholder pressure for strategic improvements as Kenvue seeks to enhance its brand performance and drive long-term value creation.
