April 6, 2015 — The company announced a massive board overhaul. CEO Michael MacDonald acknowledged that activists did play a part in shaping the changes at Medifast. Eight people will leave the company’s board as the body shrinks from 12 people to nine. Activists, including Glenn W. Welling of California-based Engaged Capital LLC, sped the moves, MacDonald said.
Mr. Welling will be one of five new members to join Medifast’s board after the revamp is complete. All of the moves will bring in fresh blood, improve Medifast’s corporate governance and help the company grow in the future, MacDonald predicted. While Medifast’s current board has “a lot of very good local members” from the Baltimore area, the new board will add directors with experience working on a national scale, MacDonald said. New directors will also have expertise in direct selling and international business. I the future, the company plans to expand its direct selling to Canada, Mexico, and beyond.