Tempur Sealy’s CEO Resigns

May 11, 2015  by in Executive Changes, Industry   

The executive is the latest casualty of a bitter proxy fight instigated by H Partners Management, the company’s largest shareholder. H Partners had lobbied for Sarvary’s resignation and replacement of two other company board members.

At the company’s shareholder meeting Friday, the three directors, including Sarvary, did not receive a majority of votes cast for re-election. Board members Andrews McLane and Christopher Masto were voted out.

Friday afternoon, the company said Sarvary would continue as CEO. That, however changed this morning.

Tim Yaggi, COO of Tempur Sealy, will serve as interim CEO while the boar embarks on its search for a successor.

In other board changes, Usman Nabi of H Partners has been named to the board as an independent director effective immediately. He will be added to the company’s compensation committee. Nabi and three independent board members will be part of the executive search committee that will work with an executive search firm.

The board will now commence to confirm one other independent board member as recommended by H Partners.

Frank Doyle has been named chairman of the board. Doyle has served on the board of directors and as chairman of the audit committee since 2003. In conjunction with is new appointment, Doyle has resigned his role as chairman of the audit committee and member of the compensation committee.

“During Mark Sarvary's tenure, Tempur Sealy has been transformed from a niche specialty player into a truly one-of-a-kind, global bedding provider, with a complete and complementary range of iconic brands that are recognized around the world,” Doyle said. “Mark has led this company through periods of challenge and growth, including playing the key role in the transformative acquisition of Sealy, to bring Tempur Sealy to its position today as the industry leader, while delivering a total shareholder return of more than 500 percent since joining the Company as CEO in 2008. Tempur Sealy has momentum and is poised to continue delivering significant value, and on behalf of the entire board, we thank Mark for his service and immeasurable contributions to our company over the years and wish him all the best in his future endeavors."

Doyle said Yaggi had the ability and experience needed to ensure a smooth transition during the CEO search.

"During the process leading up to our annual meeting we received significant feedback from our stockholders, and we have responded quickly and completely to that feedback,” Doyle said. “We will continue to strengthen our board, and we are moving past this matter fully focused on achieving our objectives around the world. The board and management team would like to thank all of our associates for their commitment and focus throughout this process and as we move forward together to continue our success. We would also like to thank our customers, vendors and partners for their continued support of Tempur Sealy."