Chipotle (NYSE:CMG) news for Friday about a shakeup for its Board has CMG stock on the move Friday.
A Chipotle news release reveals that founder Steve Ells is no longer part of the company’s Board of Directors. He was previously serving as the Executive Chairman of the Board. Ells has relinquished this position and is also no longer serving as a director on the Board.
Steve Ells’ decision to give up his positions on the Board of Directors comes following a decision by the Board. This decision is to have Brian Niccol, the CEO of Chipotle, take over the Executive Chairman role from him.
Here’s what Ells has to say about the change that has CMG stock moving today.
“Brian has proven that he is absolutely the right person to lead Chipotle forward and I’ve never been more confident about the future of this great company. I am especially grateful to the employees and our valued customers over the last 27 years who helped make Chipotle the unmatched brand in fast casual dining it is today. I look forward to following Chipotle’s continued growth and success for many years to come.”
Steve Ells leaving the Board isn’t the only change announced today. Chipotle also notes that current directors Matthew Paull and Paul Cappuccio will not stand for re-election at the 2020 Shareholder Meeting. These changes will leave the Board with seven directors, with six of them being independent.
CMG stock was down 1.6% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.