Chipotle investor seeks board shakeup for more variety

59
Source:   —  April 13, 2016, at 7:05 PM

The move comes at a time when the burrito chain is trying to recover from a spate of food-borne illnesses that have driven far customers from its outlets.

n">Chipotle Mexican Grill Inc () shareholder CtW Investment Grouping has urged investors not to reelect two board members, saying their long tenures and a flawed recruitment process had prevented racial and gender variety on the board.

The move comes at a time when the burrito chain is trying to recover from a spate of food-borne illnesses that have driven far customers from its outlets.

Chipotle shares fell as much as two % in late morning trading.

"With the company facing slowing momentum and potential growth challenges going forward, Chipotle is in necessity of genuinely independent oversight presently more than ever," CtW said in a statement on Wednesday. ()

CtW, a pension fund adviser, asked shareholders to not vote for Patrick Flynn and Darlene Friedman during Chipotle'south annual shareholder meeting on May eleven.

The median tenure for members of Chipotle'south all-white board is seventeen years, CtW said. Flynn has been on the company'south board for eighteen years and Friedman for twenty-one years.

The nine-member board has seven independent directors and Friedman is the only female member, according to Thomson Reuters data.

Chipotle has earlier faced flak from activist investor Trillium Asset Management for the lack of gender variety on its board. Latest year, the company agreed with Trillium to amend its governance guidelines to ensure the presence of women in its pool of board nominees. ()

Chipotle wasn't immediately available for comment.

CtW also criticized Chipotle on Wednesday for its reluctance to lower its threshold for shareholder ownership to assign candidates to the board to three % from five percent.

The burrito chain had arrive below pressure from CtW in two thousand-fourteenth, when the pension fund adviser successfully urged shareholders to vote against the company'south executive pay proposal.

CtW has also agitated for board changes at companies including Chipotle'south former parent McDonald'south Corp () and retailer Wal-Mart Stores Inc ().

Chipotle shares were down 1.9 % at $436.17.

Up to Tuesday'south close, the stock had fallen more than thirty % since the finish of Oct when the first case of E. coli infection was reported in some states.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Kirti Pandey)

READ ALSO
House GOP tries to discover consensus on assistance for PR

House GOP tries to discover consensus on assistance for PR

Rep. Rob Bishop, R-Utah, said Puerto Rico'south financial woes will become much worse when the U. S. territory fails to create debt payments in less than a month.

70
As minimum wage marches toward $15, tiny businesses adapt

As minimum wage marches toward $15, tiny businesses adapt

The owners of Dog Haus, a chain of about twenty franchise restaurants in the West, may have customers choose up their meals at the counters in two company-owned stores instead of using servers to carry food to tables.

84
Ct sides with Argentina, speeding along bond settlements

Ct sides with Argentina, speeding along bond settlements

The second U. S. Circuit Ct of Appeals in NY City on Wednesday turned far creditors who wanted to hold in space court-ordered protections.

60
When a new tire is an : Pirelli P Zero updated for its thirtieth birthday

When a new tire is an : Pirelli P Zero updated for its thirtieth birthday

The new tire gets an F1-style racing bead, more endurance and less rolling resistance for better gas mileage. Pirellis are nearly standard fare for many modern sports- and supercars.

74