Edward Smolyansky Launches Campaign to Replace Board of Directors at Lifeway Foods (NASDAQ: LWAY)
Edward Smolyansky, along with Ludmila Smolyansky, who together own 4,163,141 shares of Lifeway Foods (NASDAQ: LWAY), has initiated a campaign to replace the company's Board of Directors. The move comes amid governance concerns and legal challenges, including a lawsuit from Danone, Lifeway's largest unaffiliated investor.
The campaign follows controversial decisions by the current board, including a $8.5 million CEO compensation package comprising a $2 million cash bonus and 283,337 shares granted to CEO Julie Smolyansky - representing over 94% of Lifeway's 2024 net income. Additionally, the board rejected Danone's unsolicited offer to acquire remaining shares at $27 per share, a 72% premium over the 3-month volume weighted average price.
The proposed new slate includes George Sent, a food and beverage industry investment banker, Edward Smolyansky, and company co-founder Ludmila Smolyansky, aiming to evaluate strategic alternatives and maximize shareholder value.
Edward Smolyansky, insieme a Ludmila Smolyansky, che insieme possiedono 4.163.141 azioni di Lifeway Foods (NASDAQ: LWAY), ha avviato una campagna per sostituire il Consiglio di Amministrazione dell'azienda. Questa mossa arriva in un contesto di preoccupazioni sulla governance e sfide legali, inclusa una causa da parte di Danone, il maggiore investitore non affiliato di Lifeway.
La campagna segue decisioni controverse da parte dell'attuale consiglio, tra cui un pacchetto di compensi per il CEO di 8,5 milioni di dollari, comprendente un bonus in contante di 2 milioni di dollari e 283.337 azioni assegnate al CEO Julie Smolyansky - che rappresentano oltre il 94% del reddito netto di Lifeway per il 2024. Inoltre, il consiglio ha rifiutato l'offerta non sollecitata di Danone per acquisire le azioni rimanenti a 27 dollari per azione, un premio del 72% rispetto al prezzo medio ponderato per volume degli ultimi 3 mesi.
La nuova lista proposta include George Sent, un banchiere d'investimento nel settore alimentare e delle bevande, Edward Smolyansky e la co-fondatrice dell'azienda Ludmila Smolyansky, con l'obiettivo di valutare alternative strategiche e massimizzare il valore per gli azionisti.
Edward Smolyansky, junto con Ludmila Smolyansky, quienes juntos poseen 4,163,141 acciones de Lifeway Foods (NASDAQ: LWAY), ha iniciado una campaña para reemplazar la Junta Directiva de la empresa. Este movimiento surge en medio de preocupaciones sobre la gobernanza y desafíos legales, incluida una demanda de Danone, el mayor inversor no afiliado de Lifeway.
La campaña sigue decisiones controvertidas por parte de la junta actual, incluido un paquete de compensación de 8.5 millones de dólares para el CEO que comprende un bono en efectivo de 2 millones de dólares y 283,337 acciones otorgadas a la CEO Julie Smolyansky, lo que representa más del 94% de los ingresos netos de Lifeway para 2024. Además, la junta rechazó la oferta no solicitada de Danone para adquirir las acciones restantes a 27 dólares por acción, un 72% de prima sobre el precio promedio ponderado por volumen de los últimos 3 meses.
La nueva lista propuesta incluye a George Sent, un banquero de inversión en la industria de alimentos y bebidas, Edward Smolyansky y la cofundadora de la empresa, Ludmila Smolyansky, con el objetivo de evaluar alternativas estratégicas y maximizar el valor para los accionistas.
에드워드 스몰리안스키와 루드밀라 스몰리안스키는 함께 Lifeway Foods (NASDAQ: LWAY)의 4,163,141 주식을 소유하고 있으며, 회사의 이사회를 교체하기 위한 캠페인을 시작했습니다. 이 움직임은 지배구조에 대한 우려와 법적 도전, 특히 Lifeway의 최대 비연관 투자자인 다논의 소송이 있는 가운데 이루어졌습니다.
이번 캠페인은 현재 이사회의 논란이 되는 결정들, 즉 850만 달러의 CEO 보상 패키지와 관련이 있습니다. 이 패키지는 200만 달러의 현금 보너스와 CEO 줄리 스몰리안스키에게 부여된 283,337 주식으로 구성되어 있으며, 이는 Lifeway의 2024년 순이익의 94% 이상을 차지합니다. 또한 이사회는 다논의 남은 주식을 주당 27달러에 인수하겠다는 비공식 제안을 거부했습니다. 이는 3개월 평균 거래량 가중 가격보다 72% 높은 가격입니다.
제안된 새로운 후보자는 식음료 산업의 투자은행가인 조지 센트, 에드워드 스몰리안스키, 그리고 회사의 공동 창립자인 루드밀라 스몰리안스키로, 전략적 대안을 평가하고 주주 가치를 극대화하는 것을 목표로 하고 있습니다.
Edward Smolyansky, accompagné de Ludmila Smolyansky, qui détiennent ensemble 4 163 141 actions de Lifeway Foods (NASDAQ: LWAY), a lancé une campagne pour remplacer le Conseil d'Administration de l'entreprise. Ce mouvement survient dans un contexte de préoccupations concernant la gouvernance et de défis juridiques, y compris un procès de Danone, le plus grand investisseur non affilié de Lifeway.
La campagne fait suite à des décisions controversées du conseil actuel, y compris un package de rémunération de 8,5 millions de dollars pour le CEO comprenant un bonus en espèces de 2 millions de dollars et 283 337 actions accordées à la CEO Julie Smolyansky - représentant plus de 94 % du revenu net de Lifeway pour 2024. De plus, le conseil a rejeté l'offre non sollicitée de Danone d'acquérir les actions restantes à 27 dollars par action, une prime de 72 % par rapport au prix moyen pondéré par volume des 3 derniers mois.
La nouvelle liste proposée comprend George Sent, un banquier d'investissement dans l'industrie alimentaire et des boissons, Edward Smolyansky et la cofondatrice de l'entreprise, Ludmila Smolyansky, visant à évaluer des alternatives stratégiques et à maximiser la valeur pour les actionnaires.
Edward Smolyansky und Ludmila Smolyansky, die gemeinsam 4.163.141 Aktien von Lifeway Foods (NASDAQ: LWAY) besitzen, haben eine Kampagne zur Ablösung des Vorstands des Unternehmens gestartet. Dieser Schritt erfolgt vor dem Hintergrund von Governance-Bedenken und rechtlichen Herausforderungen, einschließlich einer Klage von Danone, dem größten nicht verbundenen Investor von Lifeway.
Die Kampagne folgt umstrittenen Entscheidungen des aktuellen Vorstands, darunter ein CEO-Vergütungspaket von 8,5 Millionen Dollar, das einen Barbonus von 2 Millionen Dollar und 283.337 Aktien umfasst, die an CEO Julie Smolyansky vergeben wurden – was über 94 % des Nettogewinns von Lifeway für 2024 ausmacht. Darüber hinaus lehnte der Vorstand das unaufgeforderte Angebot von Danone ab, die verbleibenden Aktien zu 27 Dollar pro Aktie zu erwerben, was einem Aufschlag von 72 % gegenüber dem volumengewichteten Durchschnittspreis der letzten 3 Monate entspricht.
Die vorgeschlagene neue Liste umfasst George Sent, einen Investmentbanker aus der Lebensmittel- und Getränkeindustrie, Edward Smolyansky und die Mitbegründerin des Unternehmens, Ludmila Smolyansky, die darauf abzielt, strategische Alternativen zu bewerten und den Shareholder-Value zu maximieren.
- Proposed new board includes experienced industry professionals and company veterans
- Significant ownership stake by founding family members (4,163,141 shares)
- Previous buyout interest from major industry player (Danone) at 72% premium
- Legal challenges from largest unaffiliated investor Danone
- Controversial $8.5M CEO compensation package consuming 94% of 2024 net income
- Board rejected acquisition offer at significant premium
- Governance concerns regarding share grants without proper shareholder consent
- Strained relationship with major strategic investor
Lifeway Foods has reached an inflection point. The Board's continued deference to the CEO has raised serious governance concerns, and it must now demonstrate in court that its actions align with its fiduciary responsibilities to shareholders.
The latest suit was brought by Danone, Lifeway's largest unaffiliated investor for over 25 years. Danone alleges that the directors breached their fiduciary duties when the Board granted 283,337 shares of stock to CEO Julie Smolyansky without obtaining Danone's consent per its 1999 shareholder agreement with Lifeway Foods.2 The grant was suspicious given the cash retention bonus paid to CEO Smolyansky of
All of this followed the rejection of an unsolicited offer from Danone, its second, to buy the shares of Lifeway it did not own for
Instead of negotiating better terms with Danone and/or mending fences with its largest single shareholder, we find Lifeway Foods having to contend with litigation stemming from clearly questionable conduct. Importantly, the timing and magnitude of the
The Board's failure to maximize shareholder value while enriching the CEO warrants a complete and immediate overhaul.
This change requires a new slate of independent directors, including George Sent. As a leading investment banker for the food and beverage industry, he is well-suited to assist the Board in objectively evaluating the strategic alternatives and acquisition offers received by Lifeway Foods. As the former lead independent director for Lifeway and former chair of Lifeway's Audit and Corporate Governance Committee, Mr. Sent is already intimately familiar with Lifeway Foods and the corporate governance challenges it faces.
The proposed slate also includes Edward Smolyansky, a member of the founding family and one of the largest shareholders, with prior service to Lifeway Foods in several key roles, including Controller, CFO, COO, and Director.
The new slate also includes Ludmila Smolyansky, co-founder of Lifeway and former Chair of the Board. Mrs. Smolyansky, together with her husband Michael, introduced kefir to the US market and helped turn a basement operation into a global enterprise. With her help, the Board can return to its business of maximizing value for shareholders and revive the integrity and spirit upon which Lifeway Foods was founded.
It is Time for Complete and Immediate Change at the Lifeway Board
Lifeway can no longer be burdened with a Board incapable of putting the interests of its shareholders ahead of those of its CEO. The relationship with Lifeway Foods' largest investor must be repaired, and an independent committee can be formed to evaluate all strategic alternatives aimed at maximizing value for shareholders. However, we must act now.
"Lifeway has disregarded not only a respected global partner but also its own founding family," said Edward Smolyansky. "Since 2021, Lifeway Foods has spent millions of shareholder dollars attempting to control the election process rather than focusing on delivering value. They have made repeated efforts to remove me as a shareholder, all of which have failed. Now, they are taking a similar approach with Danone. While I cannot speak for them, Ludmila and I are committed to restoring accountability and leadership at Lifeway."
The proposed slate has the right balance of kefir product expertise, shareholder representation, Board and operational familiarity with Lifeway, and financial and transactional experience, to usher a new growth phase for Lifeway.
For more information about the 2025 Lifeway Foods Proxy Campaign, follow Edward Smolyansky on LinkedIn and visit freelifeway.com, which provides backgrounds and summaries for the nominees, as included in the formal nomination letter to the Board and associated SEC filings.
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SOURCE Edward and Ludmila Smolyansky
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