AnthonyRosenberg/iStock Unreleased via Getty Images
VF. Corp. (NYSE:VFC) rose 2.3% after it agreed to appoint DKNY former CEO Caroline Brown to its board as part of an accord with activist Engaged Capital.
The appointment followed “constructive engagement” with VF shareholders, including Engaged, the company said in a statement on Tuesday. VF also intends to appoint another independent director in the near term mutually agreed with Engaged Capital.
The board news comes after Engaged Capital first disclosed a stake in the apparel and footwear company in October. Engaged argued that VF Corp (VFC) can realize a mid-$40 share price within three years and the activist wants the company to conduct a strategic review of its noncore assets and real estate.
“We are excited that the Board has added Caroline Brown, who will bring a wealth of apparel experience to the boardroom,” Glenn Welling, founder and CIO of Engaged Capital said in the statement. “We look forward to continuing to work collaboratively with Caroline and the rest of the Board on the appointment of the Additional Director.”
The news comes after Reuters reported On Sunday that Engaged Capital has won the support of one member of VF Corp.’s founding family in its campaign.
