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On
May 14, the Wall Street Journal had reported that Engaged
Capital was planning to launch a proxy fight for three board
seats at the chain.
Shake Shack has also mutually agreed with Engaged Capital to add
another director with restaurant operations experience, after
appointing Jeffrey Lawrence, former finance chief at Domino's
Pizza Inc, as an independent director.
According to the WSJ report, the U.S.-based shareholder activist
had determined ways to double the company's profitability within
two years and believes the restaurant chain should get rid of
its staggered board, meaning not all directors are up for
election at the same time.
However, on Tuesday, the burger chain said the activist investor
would support the board's full slate of directors at the 2023
annual meeting of stockholders.
Engaged Capital did not immediately respond to Reuters request
for additional comments.
(Reporting by Granth Vanaik in Bengaluru; Editing by Shilpi
Majumdar)
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