Just days after an activist investor urged leadership changes at Eagle-based Lamb Weston, the company’s CEO of more than eight years is out.
The potato products company appointed Michael J. Smith, the company’s current Chief Operating Officer to the CEO job starting on January 3. Smith started at Lamb Weston in 2007 when it was part of agribusiness giant Conagra, and will move up to the top slot in place of Tom Werner, who has held the job since 2016.
As BoiseDev reported yesterday, JANA Partners accumulated a five percent stake in Lamb Weston and started to agitate for changes – including new leadership or a sale. Cereal maker Post is considering a bid for the company, Reuters reported.
JANA issued a letter this week with a long list of what it perceives as failures for the company.
Werner will stay on as an advisor until August “to ensure a smooth transition,” the company said in a news release.
Lamb Weston made no mention of the JANA letter, and claimed the move was part of a “years-long” process.
“Mike’s appointment represents the culmination of a thoughtful, years-long succession planning process by our board, and we are confident he is the right leader to guide Lamb Weston forward,” Lamb Weston Board Chair W.G. Jurgensen said. “Mike has developed a deep understanding of all critical aspects of our business and commercial operations. He will also bring a fresh perspective to the role along with a blend of strategic thinking and a laser focus on capturing current market and operational opportunities, as well as a deep appreciation for our employees, customers and partners.”
Werner claimed that the change was due to achievement.
“Given all that we achieved together, and the journey yet ahead, the board and I agreed it is the right time to enact our succession plans and allow a new leader to guide the company,” he said.
Lamb Weston also cut its annual sales projections for 2025, and it stock dropped more than 17% as of 10am MT.
JANA issued a brief statement and said that though it pushed for a change in leadership, this is not what it was hoping for.
“Today’s disastrous financial results and decision to swap its CEO for another long-standing Lamb Weston executive complicit in its widespread operational and strategic debacles is just the latest stick in the eye from a board that has completely failed shareholders,” the investment group wrote. “Enough is enough: Lamb Weston requires significant board change or, in its absence, should be sold.”
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