DGB Investments has offered Ethan Allen CEO and Chairman Farooq Kathwari a non-board advisory role of board chairman emeritus to ensure a smooth transition if the activist succeeds in its proxy challenge. DGB, which owns about 5% of Ethan Allen, wants to recognize Kathwari's contribution after he has led the company since the late 1980s. Kathwari is stepping aside as the company plans to name a new CEO by mid-2027.
DGB continues to seek replacing the entire five-person board. Ethan Allen shares were little changed in New York trading, closing at $20.32 for a market value of about $512 million. The offer comes ahead of the company's annual meeting on Nov. 4, where Kathwari has also nominated himself to the board.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing