Activist Fund Whitelight Capital Ramps Up Pressure on Carrefour: Key Moves Revealed

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As the general assembly nears, the activist group will release a statement on Tuesday sharply criticizing the governance of the retail giant Carrefour. They are holding CEO Alexandre Bompard responsible for strategic missteps that have led to a nearly 5 billion euros loss in value since he took the helm.

The pressure continues to build. With the annual general meeting of Carrefour scheduled for May 28, activist group Whitelight Capital is set to publish a highly critical statement regarding the company’s CEO, Alexandre Bompard. Following their earlier criticism in March regarding the company’s franchise policy, and their formation of a collective to challenge this model, the activist fund is now targeting the company’s stock performance, which is inversely proportional to the CEO’s rising compensation and Carrefour’s financial performance.

“Despite a solid asset portfolio, the group has eradicated 4.7 billion euros in shareholder value through the plummeting stock prices since Alexandre Bompard assumed his role in 2017. During this period, the CEO has received 40.8 million euros in compensation with no clear alignment with the results achieved,” states the upcoming document.

Carrefour’s Stock Plummets by 37.6%

Indeed, Carrefour’s stock has fallen by 37.6% since its president took office, compared to a 112% increase for its competitor Tesco and a more modest 23.2% decline for Colruyt during the same period.

The fund also questions the relevance of the board of directors, which includes only 29% independent directors with an average tenure of 6.5 years—longer than the recommended durations.

Debate on Governance

“It is time to open a public debate on governance and responsibilities within the group. Carrefour deserves a leadership aligned with its challenges, and a governance capable of acting before it’s too late,” concludes Whitelight Capital.

This new wave of criticism adds to that from the Carrefour Franchisee Association, which has sued the group over practices deemed “unbalanced” by the complainants. The association claims to represent 260 stores.

These dissenting voices are expected to make their presence felt at the general assembly.