Fortune Brands' Indian CEO to Receive $18 Million Compensation Package

Fortune Brands Innovations Leadership Reversal Triggers $18.4 Million Payout

Amit Banati, former CFO of Kenvue and longtime board member at Fortune Brands, will receive a $18.4 million payout after a leadership reversal triggered by activist investors. Banati was set to assume the role of CEO in mid-May, but never formally took on the position.

Banati's appointment unraveled within days of the announcement, after Ed Garden, co-founder of Garden Investment Management and son-in-law of activist billionaire Nelson Peltz, built a sizeable stake in the company and questioned the speed and process of the CEO transition. Garden believed the board had moved too quickly in appointing Banati, echoing investor concerns about governance and long-term leadership.

As part of a cooperation agreement with Garden, Fortune Brands scrapped Banati's incoming CEO appointment, launched a fresh search for a permanent chief executive, and installed interim leadership. Banati, who had also resigned from the board, will still receive the full $18.4 million package, which includes cash and accelerated equity meant to offset what Banati forfeited by leaving his previous role.

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This arrangement is described as "make-whole" compensation, a common practice in senior executive contracts, even as they draw scrutiny during periods of corporate turbulence. The deal underscores growing shareholder pressure on Fortune Brands' board and strategy, with Swiss asset manager Pictet Asset Management disclosing a stake worth nearly $500 million shortly after Garden's deal.