Goodyear Tire & Rubber Co. has recently made several important developments in response to its cooperation agreement with activist investor Elliot Investment Management. The tire maker has added three new members to its board of directors and initiated a strategic and operational review. As a result, Goodyear’s stock rose by 0.2% on Tuesday.
New Board Members
In collaboration with Elliot, Goodyear has appointed Joseph Hinrichs, CEO of CSX Corp., Max Mitchell, CEO of Crane Company, and Roger Wood, former co-CEO of Tenneco, to its board. These additions bring the total number of directors on the Goodyear Board to 15, with 13 of them being independent.
Strategic and Operational Review Committee
As part of its agreement with Elliot, Goodyear is establishing a Strategic and Operational Review Committee. This committee will be responsible for overseeing and supporting the board and management in their evaluation of various strategic and operational alternatives. Its main objective is to maximize sustainable shareholder-value creation while building upon several ongoing initiatives implemented by Goodyear.
Richard Kramer, the CEO of Goodyear, will chair the committee. He expressed his satisfaction with the collaboration and stated, “We are pleased to have collaborated with Rich and the Board on the formation of the Strategic and Operational Review Committee and the addition of three new independent directors to Goodyear’s Board.”
Maintaining Shareholder Confidence
The announcements made by Goodyear reflect an active response to Elliot Management’s proposal to overhaul the company. By initiating this comprehensive review process and adding experienced professionals to its board, Goodyear aims to enhance shareholder value and ultimately raise its share price.