Whole Foods announced last week that a special committee of its board of directors had completed its internal investigation of charges that the company’s CEO, John Mackey, had anonymously posted messages on the Internet that hyped his own company and denigrated Wild Oats – the retailer that Whole Foods acquired two months ago.
The committee reportedly has turned its findings over to the US Securities and Exchange Commission (SEC), though it did not make those findings public. The board also said it would cooperate in any SEC inquiry into Mackey’s actions, though it also reaffirmed its support for Mackey.
The committee reportedly has turned its findings over to the US Securities and Exchange Commission (SEC), though it did not make those findings public. The board also said it would cooperate in any SEC inquiry into Mackey’s actions, though it also reaffirmed its support for Mackey.
- KC's View:
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Here’s the deal. Mackey won. The Wild Oats deal went through despite the opposition of the federal government, so there may be a slap on the wrist but little more. But he’ll have no problem with shareholders or board members.
Had he lost, it might be a different story, and the board and Whole Foods shareholders might be looking for a scapegoat.
