Starbucks and Activist Elliott Management in Settlement Talks
Investment Firm Seeks Board Expansion
Agreement Could Include New Board Member
Activist investor Elliott Management and the board of directors of Starbucks are reportedly in settlement talks, according to sources familiar with the matter. The discussions come after Elliott Management, which owns about 4% of Starbucks' shares, proposed a series of changes to the company's board and governance practices.
As part of the potential settlement, Elliott Management is seeking to add Jesse Cohn, an equity and managing partner in the firm, to Starbucks' board. The board expansion is intended to enhance the board's diversity and expertise, particularly in the areas of digital transformation and technology.
The talks between Elliott Management and Starbucks follow a period of activism by the investor. In recent months, Elliott Management has criticized Starbucks' performance, called for cost cuts, and pushed for changes to the company's strategy.
The settlement discussions, if successful, could provide a resolution to the tensions between Elliott Management and the Starbucks board. A settlement would likely involve concessions from both sides, but it could also result in a strengthened board of directors and a more responsive Starbucks to shareholder concerns.
Conclusion: The settlement talks between Elliott Management and Starbucks underscore the growing influence of activist investors in shaping corporate governance. The outcome of these talks will be closely watched, as it could set a precedent for future activist campaigns and the role of shareholders in influencing corporate decision-making.
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