Big 5 Sporting Goods Corporation (Nasdaq:BGFV) is back in the good graces of its largest institutional shareholder.
Stadium Capital Management LLC said September 9 that its Managing Director and Co-chief Investment Officer, Dominic P. DeMarco, had resigned from the retailer’s board of directors effective immediately after concluding the company had met conditions stipulated in an April 2015 settlement.
Stadium, which has been a BGFV investor since 2006, controlled 11.7 percent of BGFV’s stock as of September 9.
“In the opinion of Mr. DeMarco and Stadium, there has been a significant improvement in the composition, governance and structure of Big 5’s Board as a result of Stadium’s 2015 proxy contest and resulting settlement agreement,” Stadium said in a statement released September 9.
The statement went on to say that the “Value Creation Committee” developed by Big 5’s board as part of the settlement agreement has largely completed its work. Big 5’s board of directors approved a slate of the committee’s recommendations at its last meeting. The committee, which included DeMarco, had reviewed Big 5’s business, operations, capital allocation and strategy.
Under the terms of the settlement Stadium has the right to name a director to replace DeMarco, and intends to name an exceptionally qualified, independent individual who will help ensure that Big 5 makes continued progress in strategic planning, capital allocation and corporate governance.
“In my nearly five years of Board service, I have been fortunate to meet many Big 5 employees, and have been continually impressed by their dedication and efforts,” said DeMarco. “I wish to express my gratitude as both a shareholder and director.”
