CarMax Inc. (NYSE: KMX) announced it will add William Cobb and Jim Kessler as new directors to its board in connection with the company's 2026 annual meeting of shareholders.

The appointments follow engagement with activist investor Starboard Value LP, which has agreed to withdraw its director nominations for the 2026 meeting. Starboard invested in CarMax citing the company's value proposition and potential for stronger performance.

Cobb brings more than 30 years of consumer-facing and technology business experience. He has served as chief executive officer of Frontdoor Inc. since 2022 and chairman of its board since 2018. Previously, he was president and CEO of H&R Block Inc. from 2011 to 2017 and held senior roles at eBay Inc., including president of eBay Marketplaces North America.

Kessler has over 20 years of automotive industry leadership experience. He serves as CEO and director of RB Global Inc. since 2023, after serving as chief operating officer beginning in 2020. He previously held executive positions at Caliber Collision and ABRA Auto Body & Glass, where he managed the integration of a merger creating the first national collision repair provider in the United States.

"The addition of Bill and Jim brings valuable auto industry and consumer expertise to the Board," said Tom Folliard, interim executive chair. Keith Barr, president and CEO, said the new board members' expertise will be valuable as CarMax enters its next chapter.

Jeff Smith, managing member and CEO of Starboard Value, said the additions bring highly capable individuals to the board and expressed confidence that the refreshed board with Barr as CEO can drive substantial value creation.

CarMax sold approximately 790,000 used vehicles and 540,000 wholesale vehicles during fiscal 2025, which ended February 28. The company operates more than 250 store locations.