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Home Depot, Starboard Reach Agreement

Aug 21, 2013
Home Depot

U.S. retail chain Office Depot Inc. said it had come to an agreement with Starboard Value, a shareholder that was pushing for more say in company decisions.

With the corporation's annual shareholder meeting scheduled for Wednesday, the company said before the meeting began that company directors Marsha Evans and Scott Hedrick would step down, leaving room for two Starboard nominees, The Wall Street Journal reported.

But the company is also expanding the size of its board from 10 members to 11, which allows Starboard, which owns about 15 percent of the company, room for a third nominee.

Starboard is nominating Cynthia Jamison, Jeffrey Smith and Joseph Vassalluzzo to join the board, the Journal said.

Vassalluzzo is poised to take a spot on the firm's chief executive officer selection committee, as well, the Journal said.

Starboard, in return, agreed to cancel its proxy solicitation and to vote in favor of Home Depot's nominees for the board.

"We are very pleased to have reached an agreement with Starboard which we believe is in the best interests of all our shareholders," said CEO Neil Austrian.

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Source: Copyright UPI 2013

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