BBB's Balanced Executive Change Announcement

On the day that Bed Bath & Beyond posted dismal first-quarter results, the company announced two leadership departures. Like most of these types of news releases, the statement includes quotes from the board chair complimenting the outgoing leaders.

But in this case, the statement starts with a clear acknowledgment of issues and plans to change:

“Bed Bath & Beyond Inc. (NASDAQ: BBBY) today announced significant changes to the Company's senior leadership to focus on reversing recent results, addressing supply chain and inventory, and strengthening its balance sheet. Sue Gove, an Independent Director on the Company's Board of Directors and Chair of the Board's Strategy Committee, has been named Interim Chief Executive Officer, replacing Mark Tritton, who has left his role as President and Chief Executive Officer and as a member of the Board.”

Interim CEO Sue Gove also reinforced the company’s turnaround strategy: "We must deliver improved results. Our shareholders, Associates, customers, and partners all expect more.”

The quote highlighting Tritton’s accomplishments, and those of the merchandising VP, who is also leaving, comes later, under the heading, “Executive Changes.”

Comparing Bed Bath’s statement to similar messages, organization and accountability are probably the most obvious differences. The message sequencing illustrates the company’s primary purpose of reassuring shareholders—prioritizing financial performance over outgoing leader relationships. Although this strategy is sound, the stock fell 20.6% so far today to 5.18, a dramatic fall from its 2013 high of more than 80.