Activist investor Barington Capital Group has agreed to withdraw its proposed L Brands board nominees. Instead, it will serve as a special adviser.
The agreement comes a month after Barington urged the company to explore a spin-off of the underperforming Victoria’s Secret brand or take the financially stronger Bath & Body Works public.
As a special adviser, Barington will provide consulting and advisory services to L Brands for its business, operations, strategic and financial matters, the composition of the board and potential candidates for nomination, Reuters reports.
L Brands also announced a slate of director nominees for election to the board, which includes three independent directors and Chairman and CEO Leslie Wexner.
In March, Barington suggested that the role of chairman and CEO be held by separate individuals, an increasingly popular demand by activist investors who feel it would help companies run better, Reuters reports.
Barington plans to vote in favor of the entire L Brands board nominees at its 2019 annual shareholder meeting.
