Fortune Brands' Abrupt Reversal: Amit Banati Set to Receive $18.4 Million Compensation Package

Amit Banati, who was named chief executive of Fortune Brands Innovations earlier this year but never formally took charge, is set to receive a compensation package worth $18.4 million following a sudden reversal of his appointment, Fortune reported. An alumnus of St. Xavier’s College and IIM Lucknow, Banati had been serving as CFO at Kenvue and was also on the board of Fortune Brands before being chosen as successor to outgoing CEO Nicholas Fink. He was expected to assume the role in mid-May and had stepped down from his previous position in preparation. However, the transition quickly ran into trouble after concerns were raised by activist investors. Ed Garden, co-founder of Garden Investment Management and linked to investor Nelson Peltz, reportedly built a significant stake in the company and questioned the speed of the CEO appointment process. According to reports, the concerns centred around governance and whether the board had moved too quickly in finalising Banati’s elevation to the top role. In response, Fortune Brands entered into an agreement with Garden, granting him a board seat and signalling a broader reset in leadership. The company subsequently withdrew Banati’s appointment, initiated a new search for a permanent CEO, and put interim management in place. Despite not taking over as CEO, Banati will receive the full payout, described as “make-whole” compensation. The package includes cash and equity components designed to compensate for losses incurred after leaving his previous role. Such compensation arrangements, while increasingly common for senior executives, often attract scrutiny—especially when leadership changes occur abruptly without the executive formally assuming office.