Beyond, the new Bed Bath & Beyond Inc. (NASDAQ:BBBY), surprised investors on Monday with the announcement that its CEO Jonathan Johnson is stepping down immediately.
Johnson has led Overstock.com Inc. (NASDAQ:OSTK), which acquired Bed Bath and Beyond earlier this year, since 2019. The company’s name change from Overstock.com, Inc. to Beyond Inc. took effect on Monday.
The announcement comes amid activist investor pressure from hedge fund JAT Capital, which owns a 9.6% stake in the company, who last week urged the board to replace Johnson as CEO.
Beyond said in a statement that Johnson’s departure came as a “mutual agreement” between the board and Johnson to transition the company to new leadership.
“Following the recent acquisition of the Bed Bath & Beyond brand and our corporate renaming as Beyond, Inc., the Board and Jonathan determined that this is the ideal time for a transition in leadership to guide the company forward,” said Allison Abraham, chair of the Board of Directors.
Johnson added: “As the company turns the page to become Beyond, now is the right time for me to also turn the page to the next chapter in my career.”
As Beyond searches for a permanent replacement, its president David Nielson has been appointed interim CEO. CFO Adrianne Lee will oversee legal and human resources functions in addition to her finance responsibilities.
The company’s shares traded lower on the news, down 3.5% at US$16.20 mid-morning on Monday.
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