Marcus Lemonis Named CEO of Beyond Inc (BYON)
Beyond Inc. (BYON) has named Marcus Lemonis as its new CEO, a move meant to accelerate Beyond’s recovery attempts. Lemonis is arguably best known as a television personality who hosts The Profit on CNBC where he helps struggling small businesses achieve success. So, becoming CEO of BYON feels like a role he is well suited too, but shareholders should also know he is currently the CEO of Camping World Holdings Inc. (CWH), a mid-cap company in the auto and truck dealership sector. Lemonis first joined the Beyond (then Overstock.com) board in October 2023. His dual leadership positions could have significant implications for both companies, particularly in corporate governance and operational strategy.
Performance & Governance Red Flags at Beyond Inc.
Beyond Inc. (formerly Overstock.com) is an e-commerce is an e-commerce and technology company focused on home goods, furniture, and décor that rebranded after its acquisition of Bed Bath & Beyond’s intellectual property. Over the past year, BYON’s stock price is down over 80% with little to suggest investors see an upward swing coming. Beyond’s small 6-person board is composed primarily of directors with no outside public company track record. The exception to that is Lemonis who is also the current CEO at Camping World Holdings. Two of the entrenched directors, Corbus and Tobacco — have terms of 18+ years and despite continually low shareholder support have stayed on the board. To that point, the classified board is undoubtedly a problem for any new investors considering buying in. Investors have been unhappy with Beyond for some time now with JAT Capital writing a scathing letter to the board and a books and records request back in 2023.
Marcus Lemonis’ Track Record at Camping World
Lemonis has served as the CEO of Camping World since March 2016 and has overseen a roller coaster stock price with a nadir near $4 during COVID that has since recovered to over $17 but remains well below its October 2016 of IPO of $22. Lemonis’ Camping World total compensation in 2023 was $11.24 million in 2023. Despite poor stock performance, down -34% in the past year and -12% (annualized) over the past three years, shareholders were supportive of with positive say-on-pay votes. Similar to Beyond, Camping World has a classified board, but unlike Beyond its directors do have more substantial outside public company board experience. Unfortunately most have poor Boardroom Alpha ratings — a measure of how companies perform under a director’s stewardship — and negative TSRs.
The Right Move for Beyond?
The initial market reaction to the move isn’t positive — intraday trading has BYON down over 12% at $5.39. While aggressive action is clearly needed to right the ship, investors may not be convinced that putting Lemonis in charge is the right move. It won’t be easy for investors to overlook the on-going performance and governance issues at Camping World and the fact that Lemonis must already be stretched by the challenges there.