Bed Bath & Beyond replaces CEO Tritton as sales plunge

June 29 (Reuters) – Bed Bath and Beyond, Inc (BBBY.O) On Wednesday it replaced Chief Executive Officer Mark Triton as part of a management reshuffle to reverse the decline in its business, the home goods retailer said.

Shares were down 13% in pre-market trading, as the company’s first-quarter net sales fell 25%, capping a year of lower sales than market expectations.

The reorganization in senior management comes just a few months after activist investor and billionaire retailer Ryan Cohen criticized an “over-ambitious” strategy, overpaying senior executives and failing to reverse market share losses.

Cohen, who is also the president of GameStop Corp (GME.N)did not agree to Tritton’s $27 million compensation over the past two years, saying it was far more than what was earned by top bosses at the biggest retailers including Macy’s (MN)Cool (KSS.N)and the dollar tree (DLTR.O).

“Mr. Triton must recognize that CEOs who receive huge compensation and seek frequent publicity also have much higher expectations when it comes to growth and shareholder value creation,” Cohen said in March.

The company then reached an agreement with Cohen by appointing three new directors, two of whom are on the committee, to explore options for the baby products unit.

On Wednesday, Strategy Committee Chairman and Independent Director Sue Goff appointed as Triton’s replacement on an interim basis.

Tritton was appointed CEO in 2019 shortly after the retailer settled with another group of activist investors who criticized the company for failing to adapt quickly to a shift in consumer preference for online shopping.

Bed Bath & Beyond has also replaced its chief commercial officer Joe Hartsig with Mara Sirhal, general manager of Harmon Health & Beauty Stores, as it looks to overcome supply chain issues that have plagued it for most of the pandemic.

(Reporting by Uday Sampath in Bengaluru). Editing by Aaron Coeur

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