NYC Comptroller Brad Lander Statement on Resignation of Nelson Peltz as Board Chairman of Wendy’s

NYC Comptroller Brad Lander Statement on Resignation of Nelson Peltz as Board Chairman of Wendy's

New York, NY - New York City Comptroller Brad Lander released a statement on the resignation of Nelson Peltz as chairman of the board of Wendy's.

The five New York City retirement systems have long advocated for a change in board leadership at Wendy's due to ongoing concerns of a conflicts of interest; seemingly disproportionate influence over Wendy's Board, whose members include Peltz's son, Matthew, and his longtime business partner, Peter May; and Peltz's unresponsiveness to shareholders regarding Wendy's supply chain labor standards.

"We have long been concerned with Peltz's disproportionate control and leadership style, and have repeatedly called for independent board leadership," said New York City Comptroller Brad Lander. "This is a positive and consequential step that provides Wendy's with a fresh opportunity to improve its performance. We look forward to the company's improved responsiveness to its investors and stakeholders, and better attention to labor standards, including child labor violations, at its franchisees and suppliers."

In both 2022 and 2023 the Systems introduced shareholder proposals urging the company to implement a policy requiring the chair of the board to be independent of Wendy's and any Wendy's shareholder holding more than 15% of outstanding shares. In 2023, despite nearly 41% of votes unaffiliated with Trian Fund Management cast in support of the proposal, the company refused to make serious changes. This effort by the Systems was in line with its belief that independent board leadership is key to promoting independent board oversight of the company, to the benefit of shareowners.

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