Kenvue, the consumer health company behind well-known skin care and beauty brands such as Neutrogena and Aveeno, has reached a settlement with activist investor Starboard Value following a months-long proxy battle. As part of the agreement, Kenvue has appointed three new members to its board of directors, including Starboard CEO Jeffrey Smith.
The dispute began in October 2024 when Starboard, after acquiring a stake in Kenvue, raised concerns over the underperformance of the company’s skin health and beauty segment.
In addition to Smith, Kenvue has welcomed two independent directors to its board: Sarah Hofstetter, President of e-commerce firm Profitero, and Erica Mann, former head of Bayer’s consumer health division. As part of the settlement, Starboard has agreed to withdraw its previously proposed board nominees.
This resolution comes after several months of negotiations focused on improving the performance of Kenvue’s iconic personal care portfolio. The appointment of new board members is seen as a strategic move to inject fresh perspectives into Kenvue’s leadership, with the company aiming to revitalize its beauty segment and enhance shareholder returns.
The settlement highlights the increasing pressure on companies in the cosmetics and personal care industry to optimize brand portfolios and adapt to evolving consumer preferences.
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