⚡ Get All Content for 20% Off ⚡

Darden CEO Steps Down Amid Investor Battle Clarence Otis announced his departure from the parent company of Olive Garden on the same day the company completed the sale of Red Lobster.

By Kate Taylor

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Darden Restaurants has been making big changes. And the company is on the edge of having to make even bigger ones after completing the sale of Red Lobster and announcing that its CEO will step down on the very same day.

Darden announced yesterday that Clarence Otis is stepping down from his position as chairman and CEO of the company. Otis will continue to serve as CEO until the appointment of a successor, or the end of 2014, but the role of chairman and CEO has now been cleaved into two positions.

The announcement follows the completion of Darden's sale of Red Lobster to Golden Gate Capital, also announced on Monday.

Otis joined Darden in 1995. The company appointed him CEO in 2004, and chairman of the board in 2005.

Related: Olive Garden Undergoes 'Brand Renaissance' as Investors' Criticism Intensifies

He has led the company in times of extreme growth – under his tenure, Darden grew its annual sales to more than $8.7 billion from $5.2 billion, and increased the number of restaurants to 2,200 from 1,381. However, in recent years, he's also been forced to lead the company through a period of low profits and embattled investor relations.

Activist investors Starboard Value and Barington Capital Group have been at odds with Darden since the company announced plans to spin off or sell Red Lobster, while keeping Olive Garden, in December 2013. In May, shortly after Darden announced plans to sell Red Lobster to Golden Gate, Starboard announced plans to unseat the entire Darden board through a proxy contest, backed by Barington.

On Monday, seeking compromise, Darden announced that its board of directors would only nominate nine of its directors for election, leaving three spots open for nominees proposed by Starboard. Starboard is apparently still set on unseating the entire board, however, calling the Red Lobster sale the "destruction of a billion dollars in shareholder value."

Related: Red Lobster Completes Sale, Revamps Food Presentation

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Business News

Costco CFO Reveals Uncertain Fate of $1.50 Hot Dog and Soda Combo

CFO Richard Galanti reveals that the price will stay the same — but only "for a while."

Business News

The Most Unexpectedly Popular Side Hustle of the Decade Has Low Startup Costs and High Markups

A new report shows that vending machines are a popular investment — and the industry is set to grow up to $3 billion by 2031.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.

Leadership

Former Interrogator Shares 5 Behaviors Liars Exhibit and How to Handle Them

Five deceptive behaviors to look for and how to respond to those behaviors when you encounter them.