Shake Up at Shake Shack?

內容大綱
In May 2023, Shake Shack Inc., the New York City-based fast-casual restaurant chain faced an activist’s campaign from Engaged Capital LLC. Citing poor performance compared to industry peers over the 2020–2022 period, Engaged Capital sought three board seats, with its nominees to have industry-specific expertise, to advise Shake Shack’s management team on turning around the multi-unit chain. Shake Shack had a dual-share capital structure with founder, Daniel Meyer, and his associates controlling 85.9 per cent of the voting rights. Meyer and the board had to consider and respond to Engaged Capital’s push for board seats at Shake Shack’s annual shareholder meeting on June 29, 2023.
學習目標
This case deals with corporate governance in a publicly owned company and the role of a corporate board, a subject typically covered in strategic management courses at the undergraduate and graduate levels. The case is best placed at the end of the course once students have been introduced to the topic of corporate governance.<br><br>After working through the case and assignment questions, students will be able to<br><br><ul><li>understand the role of a corporate board of directors in a publicly owned company;</li><li>analyze the advisory role of a corporate board; and</li><li>evaluate the board’s role as a key corporate governance mechanism.</li></ul>
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