Wagamama owner Restaurant Group jumped 6% as it announced the departure of chairman Ken Hanna following months of pressure from activist funds wanting a change.
Hanna said he would not be standing at the next AGM due to personal reasons.
Adding it had been a privilege to be chair of the Frankie & Benny’s owner, he said he was leaving a business “in great shape” with revenues up 10% in its latest half year and underlying profits 15% better.
In July, Irenic Capital Management, a New York-based investor with a 2.4% stake in TRG, called for Hanna to be replaced.
A statement from the disgruntled investor at the time claimed the former Tesco director showed a “documented disregard for the best interests of its shareholders.”
Oasis Management, Restaurant Group’s largest shareholder, and TRM Capital have also slammed the board and remuneration while calling for a spin-out of all brands apart from Wagamama.
Restaurant Group added Hanna would remain as chair until a successor is found.
Shares rose 6% to 47p.