Wolterk
When Barington Capital disclosed a stake in Mattel (NASDAQ:MAT), the toymaker surged by 4.3% in after-hours trading, led by the activist’s call to explore strategic alternatives for its Fisher-Price and American Girl brands.
Barington also recommended that Mattel pursue a $2 billion share repurchase program and cease “excessive” stock-based compensation, as stated in a release late Thursday.
James Mitarotonda, Chairman of Barington, addressed Mattel CEO Ynon Kreiz in a letter, expressing concerns about the declining performance of Fisher Price and American Girl, suggesting that these brands may be detracting from the success of Mattel’s other segments and hurting shareholder value.
Barington further urged Mattel (MAT) to separate the roles of the CEO and Chairman, advocating for the elevation of the Lead Director to the Chairman role.
The news was earlier reported by the Wall Street Journal.
Mattel (MAT) is scheduled to report Q4 results on Wednesday.
More on Mattel
