Fortune Brands Innovation is scrapping its planned appointment of incoming chief executive Amit Banati, agreeing to a deal with activist investor Ed Garden that includes adding Garden to its board, according to sources. The padlock and building products maker, whose shares are down 32 per cent over the past year to a market cap of $5.2bn, faced a proxy fight over governance and Banati's lack of building products sector experience. Banati, previously finance chief at Kenvue (Tylenol maker) and CFO at Kellanova, was due to start in May but faced criticism from Garden, who believes the appointment was rushed.

The settlement allows Fortune Brands to avoid a costly battle, with Garden also seeking to remove the company's staggered board structure. Fortune Brands, behind brands like Moen and House of Rohl, is now considering alternative leadership while Garden, a Trian co-founder, aims to implement governance changes to improve performance in a consolidating building products sector.