DavidsTea chief executive resigns after board shakeup
Largest shareholder blames board for taking too long to get into online commerce, failing in U.S. expansion
DavidsTea chief executive has resigned after the company's shareholders voted to turf most of the existing board by electing seven nominees presented by the company's co-founder.
Chief executive Joel Silver, who was management's face on an attempt to prevent a dissident revolt, resigned effective immediately, the company announced soon after the results were disclosed at the company's annual meeting on Thursday.
Shareholders voted about 54 per cent in favour of the people nominated by Herschel Segal, the company's co-founder and largest shareholder.
Segal becomes executive chairman and will be joined by corporate director William Cleman, Viau Foods president Pat De Marco, retired professor Ludwig Max Fisher, former MEC chief executive Peter Robinson and Roland Walton, former president of Tim Hortons Canada.
Also winning re-election is Le Chateau president Emilia Di Raddo.
Silver's departure leaves a board position open, since he was also elected.
Segal has blamed the outgoing board — of which he was a member until March — for taking too long to turn to online commerce and failing in its expansion to the United States.
His holding company Rainy Day Investments Ltd. owns about 46 per cent of the outstanding shares.
However, three investment companies that together control 36.5 per cent of the shares, opposed his plan.
The company has complained that Segal was trying to acquire the company without paying a premium.