Amit Banati, who was named chief executive of Fortune Brands Innovations in February but never formally assumed the role, will receive an $18.4 million payout after a dramatic leadership reversal triggered by activist investors, Fortune reported.
The St.Xavier's College and IIM Lucknow alumni had been a longtime board member at Fortune Brands and then‑CFO of Kenvue, when he was announced as the successor to outgoing CEO Nicholas Fink. He was supposed to start mid‑May. Banayi stepped down from Kenvue and signed on to lead the Deerfield, Illinois‑based home and security products company, best known for brands such as Moen, Yale, and Therma‑Tru, which reported $4.5 billion in sales last year.
But within days of the Banati's CEO announcement, the appointment unravelled. Ed Garden, co‑founder of Garden Investment Management and son‑in‑law of activist billionaire Nelson Peltz, quietly built a sizeable stake in the company and privately questioned the speed and process of the CEO transition. According to Fortune, Garden believed the board had moved too quickly in appointing Banati, echoing investor concerns about governance and long‑term leadership.
Earlier this week, Fortune Brands reached a cooperation agreement with Garden, granting him a seat on the board and signalling a broader leadership reset. As part of that shake‑up, the company scrapped Banati’s incoming CEO appointment altogether, launched a fresh search for a permanent chief executive, and installed interim leadership.
Banati, who had also resigned from the board, will still walk away with the full $18.4 million package—despite never officially starting the job. The payout, described by the company as “make‑whole” compensation, includes cash and accelerated equity meant to offset what Banati forfeited by leaving his previous role. The publication also noted that such arrangements are increasingly common in senior executive contracts, even as they draw scrutiny during periods of corporate turbulence.
For example, Swiss asset manager Pictet Asset Management disclosed a stake worth nearly half a billion dollars shortly after Garden’s deal, underlining growing shareholder pressure on Fortune Brands’ board and strategy.
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