Goodyear Tire & Rubber is announcing the addition of three new board members as part of an agreement with activist investor Elliott Management. This move comes after Elliott Management proposed a plan to enhance the company’s financial performance.
The Akron, Ohio-based tire maker has named Joseph Hinrichs, Chief Executive of transportation company CSX, and Max Mitchell, Chief Executive of machine industry company Crane, as new board members. Additionally, Roger Wood, former Co-CEO of automotive products manufacturer Tenneco, will also be joining the board.
Currently, Goodyear’s board is composed of 12 members, according to the company’s website.
In a statement released in May, Elliott Management expressed concern over Goodyear’s consistently underperforming shares. To address this issue, the firm suggested the appointment of five independent directors and exploring ways to monetize the company’s store network.
Elliott Management, which holds a 10% stake in Goodyear, also called for an operational review to improve the company’s margins. The firm believes that implementing its proposed measures could potentially increase Goodyear’s share price by more than $21.