DANBURY, Conn. -- Ethan Allen Interiors Inc. (NYSE: ETD), a leading interior design company, manufacturer and retailer in the home furnishings marketplace, announced the Board of Directors’ (the “Board”) ongoing formal CEO succession process.
The Corporate Governance, Nominations and Sustainability Committee, composed entirely of independent directors, and whose charter requires it to develop and review with the Board a succession plan for the Chief Executive Officer, has engaged a nationally recognized executive search firm that is identifying and evaluating both internal and external candidates. The Board has committed to publicly announcing Ethan Allen’s next CEO no later than June 30, 2027, the date on which Mr. Kathwari’s current contract is scheduled to end. As part of the planned succession, Mr. Kathwari has agreed to remain as a non-executive member of the Board after June 30, 2027, until the Company’s 2027 annual meeting, at which time he will step down from the Board.
Consistent with the Board’s succession planning, Mr. Kathwari will continue to lead the Company’s management team and execute Ethan Allen’s strategic priorities while supporting the Board’s search and an orderly leadership transition.
“Ethan Allen’s Board is focused on overseeing the Company for the long-term benefit of all shareholders. We have a leadership team that has built and continues to advance Ethan Allen’s designer-led, vertically integrated platform. The succession process has a clear timeline that reflects the Board’s commitment to an orderly, well-governed leadership transition. The independent directors are conducting a thorough process to identify a leader with demonstrated experience who can build on and accelerate the Company’s ongoing digital transformation, omnichannel retail strategies, and supply chain efficiency to best guide Ethan Allen’s next chapter,” said David M. Sable, Ethan Allen’s Lead Independent Director, Chair of the Company’s Compensation Committee, and a member of the Corporate Governance, Nominations and Sustainability Committee.
“The Board takes its succession and governance responsibilities seriously. Succession is a standing agenda item where the Board regularly evaluates the Company's leadership capabilities, emergency and long-term succession plans, and the capabilities required to execute our strategy over the long term,” stated Cynthia Ekberg Tsai, Chair of the Company’s Corporate Governance, Nominations and Sustainability Committee.
“I fully support the Board-led, independent CEO succession process. As Ethan Allen’s largest shareholder, I remain deeply invested in the Company’s long-term success and committed to helping ensure a smooth and seamless leadership transition. I will remain focused on executing Ethan Allen’s strategic priorities while doing everything I can to support a successful transition,” said Farooq Kathwari.
“This process provides an important period of leadership, continuity and stability. It is also allowing the Board to conduct a thoughtful, deliberate, and rigorous succession process on a timeline driven by the long-term needs of the Company. We are grateful for Farooq’s leadership over the last four decades as he helped build an incredible brand known for craftsmanship and high-touch customer service and look forward to building on this legacy during our next chapter of growth. The Board is confident in the strength and commitment of the Company's leadership team today, and we remain equally focused on ensuring we have the leadership, talent, and organizational depth necessary for continued success in the years ahead,” concluded Mr. Sable.
During the transition process, Ethan Allen will remain focused on executing its differentiated strategy, including its designer-led retail network, North American manufacturing and logistics, technology investments, and disciplined cost management.
The Board remains committed to engaging with shareholders and providing appropriate updates on the succession process.