Bergeron challenges Ethan Allen's CEO succession plan ahead of vote

Doug Bergeron, a shareholder holding 5.2% of Ethan Allen Interiors Inc. (NYSE: ETD) through beneficial ownership with affiliates, issued a statement criticizing Ethan Allen's board of directors following the company's September 21, 2026 announcement of a formal CEO succession process.

Bergeron, who is leading a proxy contest ahead of the company's 2026 annual meeting, said the board's announcement came only after his campaign nominated an alternative slate of director candidates and launched an independent CEO search on September 10. He noted that Ethan Allen's chairman and CEO Farooq Kathwari stated publicly on August 7 that CEO succession was an issue the board had "never raised."

According to Bergeron's statement, the board's disclosed timeline for the succession process could extend through June 30, 2027, meaning Kathwari may remain in both roles throughout the transition period.

Bergeron cited what he described as two decades of declining operating performance, pointing to the company's fiscal 2026 fourth-quarter and full-year results as evidence. He also referenced a special dividend declared by the board last month, characterizing it as part of a pattern of reactive moves made under pressure from his campaign.

DGB Investment, Inc. and Bergeron have filed a definitive proxy statement with the Securities and Exchange Commission, including a slate of alternative director candidates, ahead of the 2026 annual shareholder meeting.

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