PHILADELPHIA — Aramark, which provides services in food, facilities management and uniforms, reports that Chairman, President and CEO Eric Foss is retiring and Lead Independent Director Stephen Sadove has been named non-executive chairman of the board of directors.
Local media reports indicate the move comes after an activist investor made a large stock purchase and wanted to talk leadership changes in the face of revenue concerns.
The company says Foss will remain in an advisory capacity until Oct. 2. Aramark’s board has established an office of the chairman, whose members will oversee the company’s day-to-day operations and engage with the board on a regular basis until a successor to Foss is named.
The office of the chairman will consist of Sadove; Stephen Bramlage, chief financial officer; Lynn McKee, executive vice president, human resources; and Lauren Harrington, senior vice president, general counsel.
The board says it has commenced a search for a successor.
“We thank Eric for his leadership and strategic contributions that position Aramark for future success,” Sadove says. “In addition to solid financial performance, Eric built a strong management team and advanced the company’s efforts in diversity and inclusion, health and wellness, and frontline education.
“As a board, we are committed to conducting a comprehensive search, including seeking input, to identify the next chief executive officer to execute on our growth strategy and lead our 270,000 team members, for the benefit of all of our shareholders.”
“It has been an honor and privilege leading Aramark through a transformative journey, from a successful IPO to an impressive run as a public company,” Foss says. “I am enormously proud of the Aramark Service Stars around the world and what we have accomplished together. The company’s future prospects are extremely encouraging and I look forward to a smooth transition.”
Sadove, who has been an independent director on the Aramark board since 2013, is the former chairman and CEO of Saks Inc. and former chair of the National Retail Federation. A graduate of Hamilton College and Harvard University (MBA), Sadove currently serves on the boards of Colgate-Palmolive Co., Park Hotels and Resorts, and Movado Group Inc.