Fortune Brands new CEO never officially worked a day—but he’ll get $18.4 million after a massive leadership shakeup

Amit Banati left a CFO job at a Fortune 500 company, signed a contract to become CEO of Fortune Brands Innovations, and then never officially worked a single day in the role. He walked away this week with $18.4 million in cash. 

The epic payday, ostensibly to compensate Banati for what he left behind at his prior job, is the outcome of a remarkable, possibly absurd, confluence of today’s bumper executive compensation packages and activist investor campaigns.

And it’s just one facet of a wild week at the Deerfield, Ill. manufacturer of Moen faucets, Yale locks, and Therma-Tru doors, which sold $4.5 billion in products last year.

On Monday, Fortune Brands moved to clear its leadership slate after Garden Investment Management’s Ed Garden, an activist investor and son-in-law of prolific activist investor Nelson Peltz, struck a cooperation agreement this week with the company to join the board. 

But Garden isn’t the only large investor knocking on Fortune Brands’ door. In yet another twist, Swiss asset manager Pictet Asset Management filed a notice the day after Garden’s deal, disclosing a 7.6 million-share stake in Fortune Brands valued at $493 million. The position is double Garden’s at 6.4%. Pictet said it is engaging with the Fortune Brands board and management team on long-term strategy, governance, and financial performance. The notice allows Pictet to adjust to more aggressive tactics in the future. 

Together, Garden and Pictet’s positions represent nearly 10% of the company but the two investors aren’t working together. Garden’s cooperation agreement bars him from forming or joining any group with any........

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