Ben & Jerry’s has removed three members from its independent board, as part of new governance practices introduced by the iconic ice cream company.
Magnum Ice Cream Company (NYSE:MICC), which houses brands like Ben & jerry’s and Cornetto, will be enforcing a new policy that restricts the tenure of board members to nine years.
As a result, Chair Anuradha Mittal, two other long-time directors, Daryn Dodson and Jennifer Henderson, will not qualify for re-election in 2026. Mittal had told Reuters earlier this month that she has no plans to resign despite pressure.
Magnum also announced other governance changes, including the requirement for compliance with its “code of business integrity,” following the spinoff from Unilever (NYSE:UL) last week.
The Power Struggle Behind Ben & Jerry’s Governance
Magnum's actions have intensified the long-standing dispute regarding the governance of Ben & Jerry's, which was initially established to protect the brand's social mission after its acquisition by Unilever in 2000.
Vermont-based Ben & Jerry's co-founder, Ben Cohen, criticized the move, stating it was “yet another step in Magnum's systematic effort to dismantle Ben & Jerry's from the inside and silence the very social mission that gives the brand its value.” Cohen described it as a “blatant power grab.”
Magnum inherited the dispute with Ben & Jerry's board after its demerger from Unilever. The board has accused Unilever of hindering its efforts to address international issues such as the Gaza ceasefire and support for Palestinian refugees.
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Shake-Up Amid Co-Founder Exit
The move by Ben & Jerry’s comes amid a period of significant change for the company, including the departure of co-founder Jerry Greenfield in September.
In October, Cohen said his longtime business partner, Greenfield, was "devastated" by his choice to leave the company they built together. Greenfield exited the ice cream brand after facing pressure from Unilever to stay silent on his personal values.
Notably, earlier this month, an independent audit of Ben & Jerry's social-mission foundation conducted before the Magnum spinoff identified several problems, including conflicts of interest. Although management alerted the foundation to these issues, the trustees failed to implement the required changes, according to a Reuters report.
Dividend Delay Weighs On Magnum IPO
Magnum’s public listing, meanwhile, has faced a rocky start. The company said it does not expect to pay dividends until at least 2027 as it prioritises building its standalone operations, dampening sentiment among income-focused investors accustomed to Unilever's steady payouts.
Despite the near-term disappointment, some analysts have initiated Buy ratings, betting that once forced selling subsides, Magnum's strong cash flows and global market leadership will shine.
Price Target: Since its debut, Magnum Ice Cream stock has climbed 10.39% as per data from Benzinga Pro. On Monday, it rose 3.78% to close at $16.47.
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