News

Schnatter agrees to resign board post, drop suits against Papa John's

March 5, 2019

Papa John's founder John Schnatter has agreed to resign his position on the brand's board of directors, after reaching a settlement with the Louisville-based company. It's contingent, however, that his replacement on the board not be affiliated with the brand's recent $200 million investor, Starboard Value, and that the individual is named before the April stockholder meeting,  according to CNBC. If the new director isn't named by that time, Schnatter's term would expire at the meeting and he would withdraw his nomination for re-election. 

The move was made public in a Tuesday SEC regulatory filing. Schnatter released a statement to CNBC saying, "I'm happy that we were able to enter into this agreement and allow the new leadership being implemented by Jeff Smith and Starboard to help Papa John's regain its strength and market position." 

The pizza restaurateur still holds a 31 percent stake In Papa John's but has agreed to drop two lawsuits against the company that were part of his months-long fight to get back in a position of control of it, CNBC said.  Schnatter resigned his board chairmanship this summer following reports he made a racial slur during a media training call.