Edit ModuleShow Tags
Edit ModuleShow Tags

Agreement Could Finally End Papa John’s Saga


Published:

Willis Lam

It seems the dramatic legal battle within the Papa John’s board may finally end. 

According to an SEC filing, John Schnatter will resign from the board of directors once an independent director can be found to replace him or by the 2019 annual meeting. Schnatter will also drop two lawsuits against the company and will withdraw his bid to be re-elected to the board at the annual meeting. 

The company will also remove the so-called “poison pill” that it adopted in July to restrict Schnatter from communicating with other board members. 

The agreement seems to put an end to a nine-month ordeal that started with a report that Schnatter used a racial slur on a media training call. 

There are seven stipulations for the new independent director outlined in the agreement. The first being that it he or she is not the founder; it also requires the director to be “independent” pursuant to the Nasdaq Stock Market listing rules and is independent of the founder and Starboard, the activist investing fund that invested $200 million in the company and took three spots on the board. 

Schnatter, who still owns more than 30 percent of the company shares, said he was thankful it’s all over. 
"I founded Papa John's, built it from the ground up and remain its largest shareholder. I care deeply about its employees, franchisees and investors and I'm thankful that I've been able to resolve these important issues," Schnatter said in a statement to the New York Times. 

The company’s annual meeting is set to take place on April 30, 2019. 

Edit Module
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags
Edit ModuleShow Tags


Covers everything from good news to bad judgment

About This Blog

The latest news, opinions and commentary on what's happening in the franchise arena that could affect your business.

Tom KaiserTom Kaiser is senior editor of Franchise Times. He can be reached at 612.767.3209, or send story ideas to tkaiser@franchisetimes.com.
 
Beth EwenBeth Ewen is senior editor of Franchise Times. She can be reached at 612.767.3212, or send story ideas to bewen@franchisetimes.com.
 
Nicholas UptonNicholas Upton is restaurants editor at Franchise Times. He can be reached at 612.767.3226, or send story ideas to nupton@franchisetimes.com.
 
Laura MichaelsLaura Michaels is editor of Franchise Times. She can be reached at 612.767.3210, or send story ideas to lmichaels@franchisetimes.com.
 
Mary Jo LarsonMary Jo Larson is the publisher of Franchise Times Magazine and the Restaurant Finance Monitor.  You can find her on Twitter at
 twitter.com/mlarson1011.
 

Archives

Categories

Feed

Atom Feed Subscribe to the Franchise Times News Feed »

Recent Posts