Stadium Capital Management, LLC, Sleep Number Corporation's largest shareholder with approximately 11.7% of outstanding shares, issued a public letter to shareholders on November 25, 2024. The letter expressed grave concerns regarding the company's leadership and governance, citing 'massive shareholder value destruction' during the current CEO's tenure.
Stadium Capital asserted that recent management and governance changes announced by the Board on October 30, 2024, including the CEO's retirement and board declassification, were 'bare minimum, insufficient and wholly inadequate.' The activist investor called for a meaningfully reconstituted Board and a wholly independent CEO search process.
The letter specifically criticized the ongoing CEO search, alleging that outgoing CEO Shelly Ibach was involved in drafting specifications for her successor and would interview candidates. Stadium Capital also claimed the executive search team had close ties to the Ibach era, raising doubts about the independence of the process.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.