Cracker Barrel investors urged to oust DEI specialist in wake of

Cracker Barrel investors urged to oust DEI specialist in wake of

Two major proxy companies are urging shareholders to oust some Cracker Barrel board members, including a DEI advertising and marketing exec who took warmth following the chain’s disastrous brand rebrand.

Institutional Shareholder Services and Glass Lewis said Monday that change is required at the Southern eating chain after its restaurant remodels and new brand – which briefly axed the eateries’ well-known Uncle Herschel character – failed miserably, sending shares in the company down 45% to this point this 12 months.

Both companies suggested investors to vote against the re-election of Gilbert Dávila, a DEI specialist, at the annual shareholder assembly on Nov. 20 – slamming his “faulty” board-level advertising and marketing experience.

Two major proxy companies are urging shareholders to oust some Cracker Barrel board members. Clint Brewer Photography / BACKGRID

The proxy companies seemingly implied that Dávila – also one of Cracker Barrel’s top particular person shareholders – performed a major function in the company’s rebranding. 

“Dávila is highlighted in board materials as one of two marketing specialists among the independent directors. He is also a member of a standing board committee whose purview is to assess social and political risks to the company’s business,” ISS wrote in a observe. 

“As CEO, Masino’s responsibility for the logo controversy is no less than Dávila’s.”

Dávila has served as president and CEO of DMI Consulting, a DEI strategy agency, since 2010.

However, the proxy companies didn’t push for the elimination of CEO Julie Felss Masino, who took over the chain in November 2023.

Ultimately, Masino backtracked on the new brand and restaurant renovations after going through excessive backlash from clients, social media customers and even President Trump. 

ISS said eradicating Masino would just create more chaos, though it warned additional modifications could also be needed if the company continues to wrestle. 

Gilbert Dávila, a DEI specialist and member of Cracker Barrel’s board. Cracker Barrel Old Country Store

Activist investor Sardar Biglari, who also owns restaurant chain Steak ‘n Shake, has been pushing for the elimination of each Masino and Dávila. He is at the moment main his eighth proxy campaign focusing on the company.

Those efforts have reportedly value the company hundreds of thousands of {dollars} to defend, according to The Wall Street Journal. 

“The Board, Ms. Masino and the senior leadership team are working diligently in the best interests of all shareholders to position the Company to return to the momentum and positive trajectory of fiscal 2025,” Cracker Barrel said in a letter to shareholders last month.

“In contrast, Mr. Biglari is amplifying false and misleading claims to further disrupt the business and destroy shareholder value for his own ends.”

ISS warned the elimination of CEO Julie Felss Masino would just create more chaos. REUTERS

Conservative activist Robby Starbuck, who boasts more than 850,000 followers on X, has also railed against Dávila.

“What qualified him for this board seat?” he said in a video on-line over the summer time. 

“Well, you see, he’s owned a DEI consulting and strategy firm for 15 years that focuses on pushing DEI and DEI advertising.”

Dávila’s agency didn’t instantly reply to The Post’s requests for remark.

Glass Lewis also suggested shareholders to vote against board member Jody Bilney for adopting “arbitrary” and “regressive” bylaw amendments. 

“Cracker Barrel’s overtly faulty board-level marketing and brand management expertise could clearly do with an immediate rework, and further consider the Company’s recent ‘collective punishment’ approach to corporate governance reform merits stout rejection here,” Glass Lewis said in a observe. 

Cracker Barrel up to date its bylaws this 12 months to stop proxy campaigns that deliver ahead the same nominees after they fail to obtain sufficient shareholder assist.

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