Darden Restaurants Inc. CFO Brad Richmond will retire, the company said Tuesday while also announcing several leadership changes and strategic moves.
Richmond had been with Darden for 32 years, and has been CFO for the past eight years. His retirement will be effective at the end of March 2015, or sooner if a successor is appointed before then.
Darden plans to streamline support functions that will affect 60 employees and eliminate 25 open positions, the company said. It also plans to sell its corporate aircraft as part of changes expected to save the company $20 million a year in general and administrative expenses.
The changes come just six weeks after shareholders ousted Darden’s full board of directors, replacing them with nominees from activist shareholder Starboard Value LP. The company is currently operating under interim CEO Gene Lee, and is looking for a permanent chief executive to replace the retired Clarence Otis, Jr.
“Winning market share, improving same-restaurant sales and achieving best-in-class profitability are our key operational objectives going forward, so we need to fine-tune our approach to the business to make sure we are laser-focused on these initiatives,” Lee said in a statement. “The actions announced today are critically important steps in becoming more efficient in how we support the restaurants. This includes limiting the number of distractions that divert our attention from what matters most — continually working to improve the food and service we offer our guests.”
Daisy Ng, chief human resources officer for the past nine years, will transition out of her role. She will be replaced by Danielle Kirgan, currently senior vice president, human resources, at Darden’s Specialty Restaurant Group. Robert McAdam, who was senior vice president of government and community affairs for eight years, will leave the company at the end of the year.
Darden also detailed plans to streamline its support staff to create “a more efficient and nimble organization.” The new structure is designed to eliminate inefficiencies and ensure support functions are focused on “guest-facing initiatives.” Those changes will occur at all levels throughout the marketing, development, external affairs and field operations management departments.
“While these changes will significantly improve how we operate, it is always difficult to take actions that have an impact on the dedicated individuals who have made significant contributions to our company,” Lee said.
Meanwhile, Darden said it plans to eliminate a layer of field operations at Olive Garden and LongHorn Steakhouse. The efforts are designed to improve “visibility and accountability,” as the chains work on improving the guest experience.
The changes don’t come as a surprise, as Starboard had detailed numerous possible changes in Darden during the proxy fight. The activist had been critical of what it saw as Darden’s excessive general and administrative spending.
Darden’s corporate aircraft was another criticism levied by activists. The company said that it plans to “cease flight operations immediately and expects to sell its aircraft in due course.”
Contact Jonathan Maze at [email protected].
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