Schnatter set to resign from Papa John’s board
John Schnatter will resign from the Papa John’s board of directors as part of a settlement between the pizza company and its founder.
Schnatter also agreed to dismiss two lawsuits against Papa John’s, a court filing says.
Papa John’s will work with Schnatter to find an independent director, who would not be affiliated to hedge fund Starboard Value or Schnatter, records show.
Schnatter will resign from the board if the independent director is appointed before the company’s April 30 annual stockholder meeting, Papa John’s said in a filing.
Last July, Papa John’s stock plummeted and its brand was badly tar- nished after reports that Schnatter had used a racist slur during a media training session led by a New York marketing contractor.
He resigned as chairman but had remained on the board of directors.
In February, Papa John’s accepted a move by New York-based investment fund Starboard Value LP to buy a $250 million stake in the company and named the hedge fund’s CEO Jeffrey Smith as chairman of the Papa John’s board of directors.
The settlement marks an apparent end to Schnatter’s battle to keep a seat on the company’s board of directors.
Papa John’s said in a filing that Schnatter agreed to dismiss a lawsuit against the company in Delaware without prejudice and one in Jefferson County, Kentucky, related to a sublease agreement with prejudice.