Papa John's attempts to ward off founder with 'poison pill' plan
LOUISVILLE, Ky. (AP) -- Papa John's is attempting to block its disgraced founder, John Schnatter, from accumulating a controlling stake in the company by adopting what's known in the corporate world as a poison-pill plan.
The plan essentially blocks a person or business from buying up a big stake in the company without the board's permission. Schnatter owns about 30 percent of the outstanding shares of Papa John's, making him by far the company's single-largest shareholders.
The Papa John's board of directors, on which Schnatter sits, approved the plan in a meeting Sunday.
Schnatter resigned as chairman this month after his use of a racial slur during a media training session was revealed. He stepped down late last year as CEO after becoming enmeshed in the national anthem issue involving players, saying it was hurting sales.
Schnatter later said it was mistake for him to give in to other board members' pressure to give up his chairmanship. He said in a July 14 letter that some board members want him off the board altogether.
The Louisville-based company said late Sunday it will put its shareholder rights plan in place for a year. The plan would be activated if anyone acquires 15 percent or more of the company's outstanding shares without board approval.
Schnatter has not publicly indicated a desire to accumulate more of the company's stock.
Through a representative, Schnatter's Los Angeles-based attorney, Patricia Glaser, declined to comment on the poison-pill measure.
Copyright 2018 WDRB News. The Associated Press contributed to this story. All rights reserved.