Stock Groups

US Foods splits chief executive officer and chairman roles -Breaking

[ad_1]

© Reuters. FILEPHOTO – This is a US Foods delivery vehicle seen in San Diego on September 1, 2015. REUTERS/Mike Blake

By Svea Herbst-Bayliss

BOSTON, (Reuters) – US Foods Holding Corp. (NYSE:) Corp. announced on Friday that its chairman and chief executive officers have been restructured following pressure from an activist investor firm. The move was made in order to strengthen its operations.

Pietro Satriano will still be CEO, and the company’s board chair, while Robert Dutkowsky (the board’s independent lead director) has been elected as the non-executive chair.

Satriano, who joined the board as CEO in July 2015 was appointed chairman. Prior to that, Satriano was chief merchandising officers of the company.

Dutkowsky is a director from 2017.

US Foods is the second largest U.S. distributor of food after Walmart. Sysco Corp Since the outbreak of the COVID-19 pandemic, (NYSE:) has been faced with labor shortages as well as supply chain problems. Sachem Head Capital Management LP, a New York-based hedge fund veteran Scott Ferguson who holds an 8.6% share in U.S. Foods, has also put pressure on the company.

Sachem Head believes that US Foods can be more profitable if they focus less on the price of food and invest in private labels with higher prices.

Sometimes, corporations will separate their CEO and chairman positions when facing financial difficulties. Many pension funds support this step of governance.

US Foods has also named Friday two women board directors as its compensation, nominating and corporate governance boards.

According to the company, “it made a number of adjustments consistent with its pledge to corporate governance best practices.”

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses you may incur due to the use of these data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.

[ad_2]