Ethan Allen faces proxy battle over CEO succession process

Ethan Allen Interiors Inc. (NYSE: ETD) is embroiled in a proxy contest centered on its succession process for Chairman and CEO Farooq Kathwari. Activist shareholder Doug Bergeron, holding a 5.2% stake through affiliates, has filed a definitive proxy statement with the SEC to challenge the board’s approach, arguing it lacks transparency and independence in selecting Kathwari’s successor. His campaign, launched after the company disclosed a succession plan on September 10, now seeks to replace the board’s proposed slate of directors and initiate an independent CEO search, citing concerns over Kathwari’s potential continued tenure through at least June 30, 2027.