Is It Still Too Late To Help Yourself? The Decision To Introduce "Militants"

There is a "radical" change in the board of directors of underwear brand Victoria 's Secret parent L Brands.

According to the women's wear daily, the founder of L Brands, chairman of the board of directors, and CEO Leslie Wexner have recently reached an agreement with group investors Barington Capital Group, which will more actively promote the L Brands group to carry out a series of reforms, including introducing new consultants to the existing board of directors, and promising to reelect the board of directors in 2021.

In this regard, Wexner explained that the purpose of all activities is to "promote the group's revenue growth and enhance financial performance, so that its brand can remain the leading position in the market, thereby creating long-term value for shareholders and investors of L Brands".

The other side of the agreement, Barington Capital Group's CEO James Mitarotonda, said, "we are very pleased to reach a consensus with the L Brands's senior management and management. We always believe that L Brands still has tremendous opportunities to enhance its financial performance. We will work closely with the top management and the management to create long-term value for shareholders."

Barington Capital Group, which is dominated by Mitarotonda, has been regarded as a "radical faction" among investors.

It has made great efforts to promote the internal pformation of AVON's Dillard s.

Before reaching the agreement, Mitarotonda also sent a letter to Wexner, suggesting that it imitate Gap group's GAP and Old Navy to maximize shareholder interest, and then split its underwear brand Victoria 's Secret' with the bath maintenance skin care brand Bath & Body.

At the same time, it also suggested that Wexner should reorganize the board of directors, because in his view, the current L Brands board lacks independence and diversity, which directly leads to low efficiency in decision-making and management.

The current situation of L Capital is somewhat similar to that of Gap group. All of the two have been dragged down by the former main brands, but rely on the emerging sub line brands.

In recent years, Victoria 's Secret is also losing its biggest market in the US market, regardless of its attention and ratings, or sales performance.

On the contrary, the performance of Bath & Body Works is getting better.

However, this is not enough to make L Brands a marked improvement on the whole.

In the past year, the stock price of L Brands has fallen by 28.8%.

After Mitarotonda sent a letter to Wexner, the share price of L Brands briefly rose 5%.

This may also affect the judgment of Wexner, to a certain extent, helped to achieve the above agreement.

At present, although Wexner has not split the brand, he has immediately introduced two new faces to the board: Anne Sheehan and Sarah Nash.

Sheehan is the chairman of the securities and Exchange Association's investor advice Committee, and Nash has worked for more than 30 years at J.P. Morgan, and is currently the vice president of the global investment banking division.

The two are currently nominated as new members of the company's board of directors.

Not only do they have a wealth of financial experience, they can bring more independent perspectives to the board of directors, but also women, which can further strengthen the gender diversity of board members. If two people can successfully vote on new members through the board of directors, the proportion of women members of L Brands board will reach 40%.

According to the agreement, Barington Capital Group will vote for the two candidates.