Goodyear shares dip after leadership, strategy deal

Akron, Ohio - Goodyear shares fell back 3% during the day following the announcement (ERJ report) of an agreement to expand its board of directors and review group strategy.

On 25 July, the US tire maker announced immediate changes to its board of directors as part of a cooperation agreement with shareholder Elliott Investment Management LP.

The move follows months of campaigning by Elliot to change the way Goodyear is managed and significantly alter its offerings to the market (ERJ report) 

Under the 'mutual agreement' Goodyear's board has been joined by: Joseph Hinrichs, president & CEO, CSX Corp.; Max Mitchell, president & CEO, Crane Co.; and Roger Wood, former co-CEO, Tenneco.

With these appointments, the Goodyear board is composed of 15 directors, 13 of whom are independent, according to the announcement. 

Goodyear, its statement added, will nominate up to 12 directors to stand for election at its 2024 annual meeting, including the three new directors.

Also under the agreement with Elliott, Goodyear is establishing a ‘strategic and operational review committee’ to analyse group strategy and operational effectiveness.

The remit, said the tire maker, is to “maximise sustainable shareholder-value creation and build upon a number of initiatives that Goodyear has been executing.” 

The committee will be chaired by Goodyear's chairman, CEO and president Richard Kramer, and will include James Firestone, Thomas Williams, Max Mitchell and Roger Wood.

New board member Mitchell drives corporate strategy at Crane, a manufacturer of engineered components for applications in aerospace, defence and process industries markets. 

Wood served as co-CEO of automotive OE and aftermarket supplier Tenneco, between 2018 and 2020.

Prior to that, he was held leadership roles at Dana Holding Corp., a supplier of driveline, sealing and thermal-management technologies.

Goodyear's other new director Hinrichs was president of Ford Motor Co. before joining CSX, a supplier of rail-based freight transportation, in 2022.