Days after losing a corporate governance challenge to an activist investor, Tempur Sealy International announced Monday that it would overhaul its management and board.
The mattress maker said Mark A. Sarvary would resign as chief executive and as a director. The chairman, P. Andrews McLane, and the head of the board's corporate governance committee, Christopher A. Masto, would resign as well.
The company has chosen a new chairman, Francis A. Doyle, and will search for a new chief executive.
The moves by Tempur Sealy, which is based in Lexington, were prompted after shareholders backed a campaign by H Partners, a hedge fund that challenged the governance of the company earlier this year. The campaign was part of the wave of shareholder activism that has swept corporate America, as investors call for huge changes in management and strategy.
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Investors have succeeded in changing the courses of companies like Darden Restaurants, the owner of Olive Garden, and Sotheby's, the famed auction house. Another prominent challenge, at DuPont, is set to come to a head Wednesday at the company's annual meeting.
As recognition of H Partners' victory, Tempur Sealy gave Usman Nabi, a senior partner at H Partners, a seat on the board and oversight over the search for a new chief executive.
The mattress maker's chief operating officer, W. Timothy Yaggi, will serve as interim CEO until a permanent replacement is found.
"Mr. Nabi brings a strong record of shareholder value creation, including expertise in CEO recruitment and compensation structuring," Doyle said in a statement. "We are committed to working together for the long-term success of Tempur Sealy."
The company also will set up what it calls a stockholder liaison committee, which will be charged with improving communications between its board and its investors.