Darden Restaurants CEO and Chairman Clarence Otis is stepping down as the company fights to fix its flagship Olive Garden chain following its contested sale of Red Lobster.
The company, based in Orlando, Florida, also said Monday that it's changing its corporate policies to split the chairman and CEO roles.
Otis joined Darden in 1995 and ascended to the CEO spot in late 2004. The chairman position was added a year later.
The departure of Otis isn't entirely a surprise, given Darden's troubles. The company has been pressured for years to turn around declining sales at Olive Garden and Red Lobster.
Late last year, Darden Restaurants Inc. said it would hold onto Olive Garden but separate from Red Lobster. Despite objections from activist investors Barington Capital and Starboard Value about the nature of the breakup, Darden pushed ahead with its sale of Red Lobster to investment firm Golden Gate Capital and announced Monday that the deal had been finalized.
Read the Full ArticleMembers help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.