AKRON—Goodyear will add three new directors to its board and form an oversight committee, the company announced July 25, as part of a cooperation agreement with shareholder Elliott Investment Management L.P.
The West Palm Beach, Fla.-based investment firm sent a letter on May 11 to Goodyear CEO, President and Chairman Richard Kramer and its board of directors, detailing the firm's dissatisfaction with what it calls Goodyear's poor stock performance and outlining three major steps it should take.
The new board members were mutually agreed-upon between Goodyear and Elliott and will join the board effective immediately, Goodyear said.
The new members are: Joseph R. Hinrichs, president and CEO of CSX Corp.; Max H. Mitchell, president and CEO of Crane Co.; and Roger J. Wood, former co-CEO of Tenneco Inc.
The Goodyear board is composed of 15 directors, 13 of whom are independent. Goodyear said it will nominate up to 12 directors to stand for election at its 2024 annual meeting, including the three new directors.
Further, as part of its agreement with Elliott, the Goodyear board is establishing a Strategic and Operational Review Committee to "oversee and support the board and management's review of various strategic and operational alternatives to maximize sustainable shareholder-value creation and build upon a number of initiatives that Goodyear has been executing," the company said in a statement.