(Reuters) -Consumer health company Kenvue said on Wednesday it had appointed three new directors to its board as part of an agreement with activist investor Starboard Value.
The appointments settle over four months of back-and-forth with the hedge fund since it built a stake in the Band-Aid maker in October, sparking criticism over the lackluster performance in the skin health and beauty segment, which houses brands such as Neutrogena and Aveeno.
Kenvue said Starboard CEO Jeffrey Smith has joined the board along with two independent directors – Sarah Hofstetter, president of e-commerce company Profitero, and Erica Mann, former head of Bayer’s consumer health unit.
“We invested in Kenvue because of the tremendous potential we see in the company’s portfolio of iconic brands and market-leading positions in large and growing markets,” Smith said in a statement.
Starboard had last month nominated four directors to Kenvue’s board, including CEO Smith.
As part of the settlement, Starboard will withdraw its slate of nominated director candidates, Kenvue said on Wednesday.
Starboard, along with its affiliates, owns about 22 million shares, roughly a 1.1% stake, in Kenvue.
Kenvue, spun off from Johnson & Johnson, lost about 13% of its value since its debut in 2023, giving it a market value of $44.76 billion.
(Reporting by Mariam Sunny in Bengaluru; Editing by Maju Samuel)
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