Goodyear announces new directors and strategic review as part of Elliot agreement

Goodyear Tire & Rubber Co.
GT,
-0.22%
has announced three additions to its board of directors and a strategic and operational review as part of the tire maker’s cooperation agreement with activist investor Elliot Investment Management. The company’s stock rose 0.2% Tuesday. The new board members, mutually agreed upon by Goodyear and Elliot are CSX Corp.
CSX,
+1.85%
CEO Joseph Hinrichs, Crane Company CEO Max Mitchell, and former Tenneco co-CEO Roger Wood. With the new appointments the Goodyear Board is composed of 15 directors, 13 of whom are independent. As part of its agreement with Elliot, Goodyear’s board is also establishing a Strategic and Operational Review Committee. The Committee will “oversee and support the Board and management’s review of various strategic and operational alternatives to maximize sustainable shareholder-value creation and build upon a number of initiatives that Goodyear has been executing,” Goodyear said, in a statement. The committee will be chaired by Goodyear CEO Richard Kramer. “We are pleased to have collaborated with Rich and the Board on the formation of the Strategic and Operational Review Committee and the addition of three new independent directors to Goodyear’s Board,” said Elliott Senior Portfolio Manager Marc Steinberg and Portfolio Manager Austin Camporin, in the statement. Earlier this year Goodyear investor Elliot Management proposed an overhaul of the tire maker with the goal of lifting the company’s share price.