Sleep Number has issued a response to a recent shareholder letter from Stadium Capital Management, a 9% shareholder in the company. Stadium Capital called for “shareholder-driven change in the boardroom” due to poor shareholder returns, concerns over governance, and a lack of a solid transformation strategy.
In its letter, Stadium Capital criticized Sleep Number for its “tone-deaf response” to their proposal to include a Stadium Capital representative and two additional independent directors on the board.
Sleep Number, however, clarified that it has been actively engaging in ongoing discussions with Stadium Capital to better understand its perspective, and intends to continue these conversations. The company also highlighted that it has made significant efforts to address the concerns raised by Stadium Capital.
The mattress company emphasized that it has taken prompt action by putting forth a proposal that reflects its attentiveness to Stadium Capital’s input. Furthermore, Sleep Number has extended an opportunity for the shareholder to participate in selecting a new independent director.
Sleep Number revealed that the majority of its current directors are independent, with three new appointments made in the past four years.
In conclusion, Sleep Number remains committed to addressing the issues raised by Stadium Capital and is dedicated to working towards a resolution.