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Chipotle Bows to Pressure From Activist Investor Bill Ackman

December 16, 2016

Key Speakers At The New York Times DealBook ConferenceKey Speakers At The New York Times DealBook Conference
Bill Ackman, chief executive officer of Pershing Square Capital ManagementPhotograph by Bloomberg via Getty Images

Chipotle Mexican Grill (CMG), under pressure from activist investor Bill Ackman, appointed four more members to its board, including nominees from Ackman’s Pershing Square Capital Management.

Pershing Square partner Ali Namvar and former McDonald’s Corp CFO Matthew Paull, who serves on the hedge fund’s advisory board, join Paul Cappuccio and Robin Hickenlooper as directors of the burrito chain.

Chipotle has been struggling to recover from a series of food safety lapses that wrecked sales and damaged its reputation.

Cappuccio is executive vice president at Time Warner Inc and Hickenlooper is senior vice president of corporate development at media company Liberty Global Plc.

“We are pleased that Chipotle has taken the important step of refreshing its board,” Ackman said in a statement.

 

The investor, who has a nearly 10 percent stake in Chipotle, had been seeking several board seats, Reuters reported last month.

The new appointments come a week after Chipotle said its founder, Steve Ells, would resume the position of sole CEO at the company after co-CEO Monty Moran stepped down.