CMG.N) shareholder CtW Investor Group has urged investors not to reelect two board members, saying their long tenures and a flawed recruitment process had prevented racial and gender diversity on the board.
The move comes at a time when the burrito chain is trying to recover from a spate of food-borne illnesses that have driven away customers from its outlets.
Chipotle shares fell 1.5 percent in morning trading.
“With the company facing slowing momentum and potential growth challenges going forward, Chipotle is in need of genuinely independent oversight now more than ever,” CtW said in a statement on Wednesday. (1.usa.gov/1qQZINS)
CtW, a pension fund adviser, asked shareholders to not vote for Patrick Flynn and Darlene Friedman during Chipotle’s annual shareholder meeting on May 11.
The median tenure for Chipotle’s board members is 17 years, CtW said. Flynn has been on the company’s board for 18 years and Friedman for 21 years.
Chipotle was not immediately available for comment.
CtW has earlier agitated for board changes at companies including McDonald’s Corp (MCD.N) and Wal-Mart Stores Inc (WMT.N).
Chipotle shares were trading at $438. Up to Tuesday’s close, the stock had fallen more than 30 percent since the end of October when the first case of E.coli infection was reported in some states.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Kirti Pandey)