Irvine computer maker Gateway Inc. said Wednesday it added a director and plans to add another as part of an agreement with a shareholder that threatened to run its own board candidates for the struggling company’s board.
The deal with Firebrand Partners LLC, which owns 10.7% of Gateway, brings Scott Galloway to Gateway’s board.
Galloway is an associate professor at New York University’s Stern School of Business and managing member of Firebrand.
The company plans to appoint an additional independent director by the end of February. Both Gateway and Firebrand are expected to sign off on the pick.
The two new directors then would be up for re-election by shareholders at Gateway’s next annual meeting. The move expands Gateway’s board to 10 members and avoids a potential proxy battle.
Firebrand earlier said it could run candidates who could revive Gateway
In recent years, Gateway has seen losses, and then a return to profitability on sales through stores, as well as management changes and disappointing sales directly to businesses, governments and consumers.
The company also rebuffed a buyout offer from one of its larger shareholders.
