Across the Board
Cracker Barrel’s Rebrand Backfires
A new logo meant to signal change instead triggered cultural backlash and investor unease, forcing the company to backtrack
"Cracker Barrel said it is reverting to its ‘Old Timer’ logo after a rebrand ignited a culture war. ‘We said we would listen, and we have. Our new logo is going away and our ‘Old Timer’ will remain,’ the company said Tuesday….. The restaurant company’s announcement on Tuesday evening came just a day after it apologized for how it had communicated changes but said that it was keeping its streamlined new look…. After the new logo was unveiled last week, some customers and online commentators said Cracker Barrel was abandoning its tradition and heritage in favor of a sterile look. Even President Trump had weighed in on the rebranding, saying Tuesday morning that Cracker Barrel should revert to its old logo based on the response from customers…. Conservative activist Robby Starbuck had called the new logo ‘a slap in the face’ to the chain’s customers and criticized it for sponsoring Pride events and other policies he said were woke…. A survey of 1,000 U.S. adults by YouGov over the weekend found that 29% of people said Cracker Barrel’s rebrand made them less likely to eat there, while 59% of people said it made no difference.” WALL STREET JOURNAL
When the C.E.O. Retires but Won’t Go Away
Target is the latest company to keep a replaced chief executive around as an “executive chairman.” Does having two top dogs make sense?
"When Target said on Wednesday that its chief executive, Brian Cornell, would step down, the company noted that he wouldn’t go very far. In February, after 12 years at the helm, Mr. Cornell will transition to the role of ‘executive chairman.’ It’s an increasingly common move at big companies. But it doesn’t always go smoothly, and the dynamics of having two leaders with ‘executive’ in their titles can be fraught. High-profile examples of the pitfalls include Disney’s approach with Robert A. Iger, and there are other cases, like Jeff Bezos’ at Amazon, that appear to be going to plan…. With long tenure comes valuable experience. In addition to Mr. Bezos, Microsoft’s Bill Gates and Google’s Eric Schmidt stepped into executive chair roles after giving up the chief executive title. A former chief executive can provide guidance to the successor, especially one taking the corporate reins for the first time, like Mr. Cornell’s replacement, Michael Fiddelke. But Target investors and analysts did not seem to welcome the news of Mr. Fiddelke’s promotion nor the decision to grant Mr. Cornell the distinction of executive chairman.” NEW YORK TIMES
Porsche Looks to End Controversial Dual CEO Role
Investor pressure prompts a CEO succession process that could end the dual role spanning Porsche and Volkswagen
“Porsche has begun the search for a successor to CEO Oliver Blume, a source close to the matter said, signaling what is likely to be the end of his dual role at the helm of the luxury sports car maker and parent Volkswagen. Blume's twin posts have been a contentious issue among shareholders since Porsche's listing as a separate company in September 2022, with investors repeatedly calling for him to step down from one of the positions over governance concerns. Though Blume has repeatedly stated that the dual role was not designed to be permanent, he said this month that a date to sever the connection has not been set and ‘we will see how we get on this year’…. Porsche is undergoing a costly restructuring as it contends with weak demand for its sports cars in China, a sluggish transition to electric vehicles and increased U.S. tariffs that have prompted it to cut its full-year profitability target.” REUTERS
New CEO, Meet Your Most Critical Ally
A strong partnership with the board chair isn’t optional, it’s foundational to effective leadership and aligned governance
“The CEO role comes with immense responsibility and high expectations. One of the most critical relationships you’ll navigate early in your tenure is with your board chair. While you both share the same overarching goal of organizational success, misalignment is common and, if left unaddressed, can create significant problems. To avoid this and instead set yourself up for success, it’s important to proactively build a robust alliance with your board chair right from the start. When CEOs struggle to align with their boards, and particularly the chair, it often surprises outsiders. After all, directors typically play a central role in CEO selection, and a great deal of effort goes into assessment and ensuring everyone is on the same strategic page throughout that process. Yet, it’s still common to see early friction after the appointment for several reasons.” HARVARD BUSINESS REVIEW
From Headcount to High Stakes: Why Boards Must Own Workforce Planning
In a time of disruption and reinvention, talent isn’t just an HR issue, it’s a core driver of enterprise risk, innovation, and long-term value
“In boardrooms across the country, talent has long been considered a differentiator. But today, it’s more than that. It’s an existential lever. In an era marked by AI disruption, labor shortages, hybrid models and shifting employee expectations, workforce planning is no longer an operational afterthought. It is a strategic imperative, deserving the same scrutiny and foresight as cybersecurity, capital allocation and enterprise risk. Boards that fail to rigorously pressure-test talent strategies face rising exposure to execution risk and missed growth opportunities.” CORPORATE BOARD MEMBER
Don’t Underestimate the Power of Director Elections
Investors are increasingly using board votes to influence governance, from strategic missteps to diversity, risk, and leadership accountability
“Most conversations around proxy voting focus on shareholder proposals and executive compensation. Meanwhile, the most significant votes tend to fly under the radar: director elections. Boards of directors play a vital role in representing shareholder interests by overseeing a company’s strategic direction, monitoring management and ensuring accountability for the creation of long-term value. Director-election votes can be a powerful tool for weighing in on material governance issues. Increasingly, investors are doing just that. In the 2024 proxy season, directors who chaired their board’s nominating and governance committees received 5% more dissenting votes on average, reflecting investors’ willingness to hold specific directors accountable for board composition and broad governance concerns.” ALLIANCE BERNSTEIN
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