Papa John’s founder John Schnatter is leaving its board of administrators as a part of a settlement resolving a bitter dispute for management of the world’s third-largest pizza chain. The corporate stated in a regulatory submitting on Tuesday it will co-function with Schnatter to discover a mutually acceptable unbiased director who wouldn’t be affiliated with Schnatter or hedge fund investor Starboard Worth LP, which owns a virtually 10 p.c stake within the restaurant chain.
Schnatter, who owns about 30 p.c of the corporation’s shares, would resign from the board if the unbiased director is appointed earlier than the annual stockholder assembly slated for Could, Papa John’s mentioned. Schnatter stepped down as chairman final summer season, following studies he had used a racial slur on a media coaching convention name.
Schnatter has filed a number of lawsuits in opposition to the corporate in a bid to regain management of the corporation he based in his father’s tavern. In January, he claimed a victory when a courtroom ordered the board to provide him some inner paperwork, together with textual content messages associated to his firing, which Papa John’s had till then refused to share.
After studying that Papa John’s wouldn’t nominate him to its board this yr, Schnatter final Friday submitted a letter nominating himself, in line with a regulatory submitting and an individual aware of the matter. The strikes laid the groundwork for a pricey and distracting proxy battle that the settlement now helps keep away from, the individual mentioned.