After receiving a shareholder proposal from ValueAct Capital regarding the selection of new board of directors members, 7-Eleven’s parent company, Seven & i Holdings, has declined ValueAct’s nominees due to lack of experience. However, the board has agreed to reappoint 13 of its 14 directors.
“Our board of directors opposes the shareholder proposal because, after fair consideration and deliberation of the proposed new board of directors structure, taking into account the overall skillsets required of the company’s directors and interviews with the four candidates in the shareholder proposal and the company’s nomination committee, it was determined that the candidates proposed by the company would be more appropriate,” Seven & i said in a statement.
Seven & i noted that in order to establish a management structure that will contribute to further growth and maximize corporate and shareholder value over the long term, the company considered the composition of the board of directors, with an emphasis on skillsets in areas such as “experience leading a listed company or other relevant organization in a chief executive role,” experience and knowledge to realize the group’s growth strategy in terms of “Food,” “DX,” “global management” and “experience and expertise in business transformation” in line with group strategy, in keeping with the group’s accomplishments to date.
Previously, ValueAct called on Seven & i to remove four directors from its 14-member board due to “failed corporate strategy” and “governance failures” after supporting six new directors who joined Seven & i last year.
ValueAct has also cracked down on Seven & i’s corporate strategy along with pushing the company to spin off its 7-Eleven convenience store chain or consider selling the entire company.
Nonetheless, Seven & i continues to show progress by justifying the positioning of its convenience stores in Japan and in the U.S. as the main reason for its growth, while considering food as its strength.
“As a result of these strategic efforts by the group, we are achieving steady growth in our earnings, with consolidated revenues from operations and operating profit both reaching record levels in the fiscal year 2022,” Seven & i said in a statement.
Based in Irving, Texas, 7-Eleven operates, franchises and/or licenses more than 13,000 stores in the U.S. and Canada. In addition to 7-Eleven stores, 7-Eleven Inc. operates and franchises Speedway, Stripes, Laredo Taco Co. and Raise the Roost Chicken and Biscuits locations. It is known for its iconic brands such as Slurpee, Big Bite and Big Gulp.