Ethan Allen Interiors announced Monday plans to name a successor to longtime CEO Farooq Kathwari by June 30, 2027, as the Danbury-based furniture maker faces a proxy fight with an activist investor seeking to replace its board.
The company said that a board committee made up of independent directors has hired an executive search firm to evaluate internal and external candidates. It described the search as an “ongoing formal CEO succession process,” but did not say when it began.
Kathwari, 82, has led Ethan Allen for 38 years. His current contract is scheduled to expire June 30, 2027, according to the company.
Under the announced plan, he will remain a nonexecutive director after that date until the company’s 2027 annual shareholder meeting, when he will leave the board.
Bergeron criticized the company’s announcement, arguing that the incumbent directors waited too long to address succession and should not be entrusted with choosing Kathwari’s replacement.
“A credible succession process should not have needed a proxy contest to become visible to shareholders,” Bergeron said in a statement.
Ethan Allen’s directors defended their planning, saying succession is a standing board agenda item and the announced timeline will support an orderly transition.
“The succession process has a clear timeline that reflects the Board’s commitment to an orderly, well-governed leadership transition,” said David Sable, the company’s lead independent director.
The board said it is seeking a leader who can accelerate Ethan Allen’s technology investments, efforts to connect its stores and online business, and supply chain improvements.
Kathwari will continue leading the management team while supporting the search and transition, the company said.
“I fully support the Board-led, independent CEO succession process,” Kathwari said.
Bergeron, however, argued that the timetable could leave Kathwari in charge for another nine months and delay changes he contends are needed to reverse the company’s performance.
He framed the contested director election as a decision about which slate shareholders should trust to select and oversee Ethan Allen’s next CEO.
Bergeron’s separate search is being led by Kristine Miller, a former eBay chief strategy officer and one of his board nominees, with support from other members of the dissident slate. They are seeking candidates with experience in retail, consumer brands, digital commerce and corporate turnarounds.
That search does not give Bergeron or his nominees authority to replace Kathwari. A CEO appointment requires board approval, and shareholders will decide the board’s composition at Ethan Allen’s 2026 annual meeting.
Bergeron launched the proxy contest in August, criticizing the company’s succession planning, strategy and financial performance.
Ethan Allen has defended its leadership, investments and record of returning capital to shareholders, including a recently declared $3-per-share special dividend totaling roughly $76 million.
