Activist Loeb May Seek Board Changes at Bath & Body Works
- Retailer jumps 9.5% in late trading after 40% drop this year
- Loeb’s Third Point questions board’s ability to maximize value
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Activist investor Dan Loeb said he may seek board changes at Bath & Body Works Inc., arguing that several decisions at the company have raised “significant concerns” about its corporate governance.
Loeb’s Third Point, which has increased its stake in the retailer to 6%, said in regulatory filing Thursday that it believes the company’s board has made errors in how it has structured its executive compensation. Third Point also has “significant concerns” about financial discipline at the company, investor communication and its board composition, including “the ability of current board members to make long-term value-maximizing decisions through responsible and thoughtful capital allocation.”