Dive Brief:
- Seven & i, parent company of 7-Eleven, is splitting the roles of CEO and chairperson of the board of directors, according to a Thursday announcement from the company.
- Stephen Hayes Dacus, the lead independent outside director, will become chairperson if approved at the retailer’s Board of Directors meeting on May 28. Ryuichi Isaka continues as president and CEO.
- This split and the news that the company is considering splitting off its superstore business have appeased one of Seven & i’s most vocal shareholders, investment firm ValueAct Capital, which repeatedly pushed the retailer to shake up leadership and focus on its c-stores.
Dive Insight:
Seven & i says this move will strengthen its corporate governance structure, improve the transparency and objectivity of its decision making and boost the effectiveness of corporate strategies, according to the announcement.
“We believe that separating the positions of Chairperson of the Board of Directors and CEO will better ensure the effectiveness of discussions on management strategy and supervision of business execution at the Board of Directors meetings,” Seven & i said in its announcement.
Stephen Dacus joined Seven & i’s board in 2022, according to his LinkedIn profile. He currently serves as the chairperson of the company’s strategy committee. He is also chairman of the board of fellow retailer Daiso and a director with food manufacturer Hana Group, according to his LinkedIn profile.
This move may have helped salvage relations between Seven & i and one of its larger stockholders.
ValueAct previously pushed for the retailer to spin off its convenience store business in January 2023. It said the value of that segment was being bogged down by the rest of the company. Since then, Seven & i has sold off its Sogo and Seibu department stores and is considering spinning off its supermarket arm.
Later in 2023, ValueAct opposed four of Seven & i’s returning board members, assigning them much of the blame for the retailer not living up to its potential. In contrast, ValueAct said in its letter on Thursday that it will support this year’s nominees.
"As long-term shareholders of Seven & i, we are encouraged by the strategic steps and governance changes that the board and management have just announced,” ValueAct said in its letter.
With the upcoming retirement of board member and Chief Administrative Officer Katsuhiro Goto, Seven & i has nominated Tamaki Wakita, chief strategy officer, to the vacant seat. The rest of the board nominees are unchanged.
The board of directors meeting will follow Seven & i’s shareholders’ meeting.
