Used-car retailer CarMax announced Thursday it has reached an agreement with activist investor Starboard Value to appoint two new directors to its board of directors ahead of the company’s 2026 annual shareholder meeting.
The automotive company will add Bill Cobb and Jim Kessler as board members following pressure from Starboard Value, which revealed its investment position in CarMax last month. The activist investment firm had put forward nominations for Cobb and Starboard’s founder and chief executive Jeff Smith to join the board while calling on the retailer to enhance its online customer services, reduce operational expenses and restructure its pricing model.
As part of the settlement agreement and with the planned addition of Cobb and Kessler to the board, Starboard Value has agreed to pull back its director nominations for the upcoming annual meeting, according to CarMax’s announcement.
CarMax Chief Executive Keith Barr stated that the incoming board members will contribute valuable automotive industry knowledge and consumer market experience to the company.
“We are confident that the refreshed Board in conjunction with Keith as CarMax’s new CEO can drive substantial value creation,” Smith said.
