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Tempur Sealy CEO Defends Performance
The CEO of Tempur Sealy International (NYSE: TPX) has issued a letter to shareholders defending his job and the company’s performance against an activist shareholder’s attacks.
H Partners Management, Tempur Sealy’s largest shareholder, has called for the ouster of Mark Sarvary, CEO, and two other board members. H Partners has accused the company of underperforming, poor corporate governance and execution failures since acquiring Sealy in 2013.
The company has also said Sarvary isn’t capable of managing Sealy.
In the letter to shareholders, Sarvary outlines the company’s actions to sustain value, set strategy and the changes the management team executed throughout the year.
The letter also includes a handwritten letter to Sarvary from Arik Ruchim, a principal at H Partners, written in January commending him on the company’s progress.
Following that letter, H Partners contacted Andy McLane, chairman of the board, demanding changes to the board including the firing of Sarvary.
“Make no mistake, however; we believe H Partners' demands make its intentions clear: remove the team overseeing and implementing the current strategy, setting Tempur Sealy adrift while awarding H Partners key roles at your company,” Sarvary writes in the letter encouraging shareholders to vote for the current board.
Tempur Sealy’s annual shareholder meeting is set for May 8.
The complete letter to shareholders is available online.