Restaurant giant Darden’s chairman and CEO, after thumbing his nose at activist investors, is now saying good-bye.
Clarence Otis has agreed to relinquish both roles after pushing through a controversial move to sell the troubled Red Lobster chain, which had been opposed by activist shareholders Starboard Value LP and Barington Capital.
Otis is stepping down as chairman immediately, and current independent lead director Charles A. Ledsinger Jr. has been named independent non-executive chair.
Otis will continue as CEO until a successor is named or Dec. 31, whichever is earlier. The company plans to keep the positions separate.
Darden shares rose 5 percent in after-hours trades Monday following the announcement.
Starboard will get three of Darden’s 12 board seats. This spring it won the right to call a special shareholder meeting on the matter, only to be ignored by Darden’s board.