Yale padlock maker to axe new CEO before he starts

Fortune Brands Home & Security IncAdd to myFTGet instant alerts for this topicManage your delivery channels hereRemove from myFTYale padlock maker to axe new CEO before he startsFortune Brands staves off proxy battle with asset manager set up by Trian co-founder Ed GardenShares in Fortune Brands are down 28% over the past year © DreamstimeYale padlock maker to axe new CEO before he starts on x (opens in a new window)Yale padlock maker to axe new CEO before he starts on facebook (opens in a new window)Yale padlock maker to axe new CEO before he starts on linkedin (opens in a new window)Yale padlock maker to axe new CEO before he starts on whatsapp (opens in a new window) Save Yale padlock maker to axe new CEO before he starts on x (opens in a new window)Yale padlock maker to axe new CEO before he starts on facebook (opens in a new window)Yale padlock maker to axe new CEO before he starts on linkedin (opens in a new window)Yale padlock maker to axe new CEO before he starts on whatsapp (opens in a new window) Save Oliver Barnes in New YorkPublishedMarch 16 2026Jump to comments sectionPrint this pageUnlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.The maker of Yale and Master Lock padlocks is set to replace its incoming chief executive before his first day in the job as part of a détente with an activist hedge fund set up by a Trian co-founder. In order to stave off a proxy fight with activist investor Ed Garden, Fortune Brands Innovation has committed to rerun its CEO search as well as adding Garden to its board of directors, according to people familiar with the matter. Garden Investments, the Trian co-founder’s new investment vehicle, privately nominated a slate of directors to Fortune Brands’ board earlier this year, pushing for sweeping corporate governance changes at the building products supplier to turn around its lacklustre performance, the people said. Shares in Fortune Brands are down 32 per cent over the past year, giving it a market capitalisation of just under $5.2bn as of Friday’s close. Its shares plummeted as much as 18 per cent at the start of the year when it revealed poor quarterly results alongside the departure of its longtime CEO Nicholas Fink.Fortune Brands and Garden did not immediately respond to requests for comment.Investors including Garden blamed the precipitous share price drop in part on the appointment of Amit Banati, as chief executive, pointing to his lack of experience in the building products sector. Banati had been Tylenol maker Kenvue’s finance chief in the run-up to its sale to Kimberly-Clark. He was due to assume the top job formally in May. Ed Garden will be added to Fortune Brands’ board of directors © Michael Nagle/BloombergGarden believed Fortune Brands had rushed Banati’s appointment and wanted the company to hunt for an alternative. Banati, who was also previously chief financial officer at packaged food group Kellanova before its sale to Mars, may also relinquish his board seat at Fortune Brands, which he had held since 2020, the people added.Last year, a record 32 CEOs of US companies stepped down within a year of being targeted by activist investors, according to a Barclays report into shareholder activism. The settlement will allow Fortune Brands to avoid a messy and costly fight against Garden. As part of the deal, the padlock maker is also considering removing its staggered board structure, which meant only three directors out of 10 were up for election this year. A settlement is likely to be announced in the coming days but plans could shift, the people said. Fortune Brands is also behind bathroom fixtures brands Moen, House of Rohl and Aqualisa. As one of the three co-founders of Trian Fund Management alongside billionaire Nelson Peltz, Garden has long been one of the leading lights among activist investors, helping to steer campaigns against corporate giants including General Electric and Procter & Gamble over nearly two decades at the firm. In 2023, Garden stepped down from Trian to launch family office investment vehicle Garden Investments, which would recycle his tried-and-tested activist playbook. Garden had already secured a board seat at kitchen equipment company Middleby after building a 5 per cent stake as well as successfully pushing it to spin off its food processing unit and divest control of its kitchen products unit behind the Aga stove. Garden is not prioritising a break-up at Fortune Brands and instead believes the company could ride a wave of consolidation sweeping across the building products sector to growth, the people said. Serial dealmaker Brad Jacobs’ ambition to build a $50bn building products group through dealmaking has triggered competitors such as Home Depot and Lowe’s to strike large deals of their own. Reuse this content (opens in new window) CommentsJump to comments section Follow the topics in this article US companies Add to myFT Retail & Consumer industry Add to myFT Corporate governance Add to myFT Fortune Brands Home & Security Inc Add to myFT Oliver Barnes Add to myFT Comments