L Brands says hedge fund to withdraw board nominees after reaching agreement

L Brands said on Thursday activist investor Barington Capital has agreed to withdraw its proposed board nominees and instead will serve as a special adviser as part of an agreement with the company.

The agreement comes a month after Barington urged the company to either explore a spin off of the underperforming Victoria’s Secret brand or take the much financially stronger Bath & Body Works public.

Barington would now vote in favor of the entire L Brands board nominees at its 2019 annual shareholder meeting, the company said.

As a special adviser, Barington would provide consulting and advisory services to the company for its business, operations, strategic and financial matters, the composition of the board and potential candidates for nomination.

L Brands also announced on Thursday a slate of director nominees for election to the board, which includes three independent directors. The company’s nominees include its Chairman and Chief Executive Officer Leslie Wexner.

In March, Barington had also suggested that the role of chairman and chief executive officer be held by separate individuals, an increasingly popular demand by activist investors who feel it would help companies run better.