Stadium Capital Management, LLC, Sleep Number Corporation's largest shareholder, issued a letter to the Board of Directors on December 12, 2024, asserting that shareholders representing more than 45% of the outstanding shares support its recommended path forward for boardroom changes. This level of support equates to a majority of votes cast at recent annual meetings.
The activist investor called on long-tenured directors Stephen Gulis, Michael Harrison, Shelly Ibach, Brenda Lauderback, and Barbara Matas to step aside. Stadium Capital contended that these directors lack credibility with investors and have overseen significant value destruction during their tenures.
Stadium Capital also reiterated its lack of support for the current CEO search process, citing the influence of the outgoing CEO. The firm emphasized that the market reaction, including a reported increase in Sleep Number's share price since its November 25th letter, indicates investor demand for meaningful change.
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