CarMax faces board challenge from Starboard Value for 2026 meeting

CarMax Inc. (NYSE: KMX) confirmed that Starboard Value LP nominated two directors for election to the company's board at the 2026 annual meeting of shareholders, according to a company statement.

The used car retailer said its engagement with Starboard has been productive and that both parties agree Keith Barr is the appropriate leader for the company. Barr was appointed CEO on February 12 and will begin his role on March 16.

"CarMax has been taking the necessary steps to ensure that this business delivers on its potential and is responsive to shareholders," said Tom Folliard, Executive Chair of the Board.

The company implemented leadership changes in November, installing interim leadership under David McCreight and Folliard before appointing Barr as CEO. CarMax's board said it will present its recommendation on Starboard's nominees in due course.

During fiscal year 2025, which ended February 28, CarMax sold approximately 790,000 used vehicles and 540,000 wholesale vehicles at auctions. CarMax Auto Finance originated more than $8 billion in auto loans during the period, adding to its nearly $18 billion portfolio.

BofA Securities and Goldman Sachs are serving as financial advisors to CarMax, while Wachtell, Lipton, Rosen & Katz is the company's legal advisor. The company stated shareholders are not required to take any action at this time.

CarMax operates more than 250 store locations with over 28,000 associates and has been recognized as one of Fortune's 100 Best Companies to Work For for 21 consecutive years.

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