CarMax settles with activist Starboard with two new board appointments
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Jeff Smith, CEO and Founder of Starboard Value, speaks during 13D Monitor's Active-Passive Investor Summit in New York City, U.S., October 21, 2025. REUTERS/Jeenah Moon
April 9 (Reuters) - CarMax said on Thursday it would add Bill Cobb and Jim Kessler to its board in connection with its 2026 annual shareholder meeting, after activist investor Starboard Value pushed for changes at the used-car retailer.
Starboard, which disclosed a stake in CarMax last month, had nominated Cobb and its founder and CEO, Jeff Smith, to the board while urging the company to improve its digital customer experience, cut costs and overhaul its pricing structure.
Following discussions with the retailer and the planned appointments of Cobb and Kessler, Starboard agreed to withdraw its director nominations for the annual meeting, CarMax said.
The new directors would bring auto industry and consumer expertise, CarMax CEO Keith Barr said.
"We are confident that the refreshed Board in conjunction with Keith as CarMax's new CEO can drive substantial value creation," Smith said.
(Reporting by Dharna Bafna in Bengaluru; Editing by Shreya Biswas)
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