Darden Restaurants Appoints Interim CEO and Names Former Wal-Mart CEO to Board
ORLANDO, FL – Darden Restaurants names Gene Lee as its new interim CEO following the Board takeover by Starboard. Lee, who has been Darden’s Chief Operating Officer for about one year, is replacing longtime CEO Clarence Otis.
Lee might not hold this post for very long. Jeffrey Smith, the Starboard CEO appointed independent, non-executive Chairman of the Board, told USA Today that the Board’s search committee will conduct “a full search for the next CEO of Darden.”
That could include some of the newly elected Darden Board of Directors including Brad Blum, a former CEO of Burger King and former Olive Garden President, and Jean Birch, a former President of IHOP Restaurants, according to USA Today.
Darden’s Board has also voted to add a 13th seat to the Board and appointed William S. Simon, a former CEO of Wal-Mart U.S. and former Darden Board member, effective immediately, according to a press release. “Darden has a solid foundation in place, and I’m excited to be a part of the new Board as we work to build on the current momentum and unlock the Company’s full potential.”
On Simon’s return, Smith commented, “My fellow Board members and I are pleased that Bill has agreed to return as a Director. As previously indicated, we were willing to consider the right former director with the skill sets, experience and perspectives that would best complement the new Board members. Given Bill's extensive experience leading global consumer retail companies as well as his experience with companies in the restaurant, food and beverage industries, he certainly fits that criteria.”
USA Today reports that a Fitch Ratings report from this week said Darden "could look like a different company two years from now with new executive leadership, fewer brands and less real estate ownership." For the Olive Garden chain, the report noted that "significant work still needs to be done to drive sustainable same-restaurant sales growth."
Are these appointments enough the turn this embattled company around? Stay tuned to AndNowUKnow for the latest updates.
