A lame duck CEO, a swift sale of Red Lobster without shareholder approval, and two hedge funds out for the entire board should make the Darden annual meeting in Orlando next month quite the spectacle. So. Much. Drama.
Keith Bedford / Reuters / Reuters
You could call it the battle of the breadsticks. When Darden Restaurants, owner of Olive Garden, Bahama Breeze, LongHorn Steakhouse and, until last month, Red Lobster, holds its annual shareholder meeting next month in Orlando, Fla., the stage will be set for a high-tension gathering that has a lot of potential to turn ugly for the company's board. Here's a look at what's at stake and what's taken shape in the last eight months since two activist hedge funds have gotten involved in an increasingly hostile fight with the struggling restaurant chain.
At time time of its annual meeting on September 30, Darden will like have a lame duck CEO and newly appointed Chairman of its board.
Clarence Otis, Darden's outgoing CEO and former Chairman.
Jin Lee / Getty
Last week, Darden announced the sudden resignation of Chairman and CEO Clarence Otis the day its sale of Red Lobster closed. Otis stepped down from his Chairmanship immediately, but will stay at the helm of the company as CEO until Darden can find a replacement or the end of the year, whichever comes first. The company's board also decided to split the two roles going forward.
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