Overview
- Starboard nominated Jeffrey C. Smith and Frontdoor CEO William C. Cobb for election to CarMax’s nine-member board at the 2026 annual meeting.
- The activist disclosed plans to file a preliminary proxy statement and a universal proxy card with the SEC to solicit shareholder votes for its slate.
- In a letter to incoming CEO Keith Barr, Starboard urged a revamped digital experience, simpler online trade-ins, higher conversion, reconditioning efficiencies and AI-driven workflow improvements.
- Starboard called for tighter cost discipline with SG&A at 70%–75% of gross profit and suggested modest price cuts of about $100–$300 per vehicle using a real-time, local data-driven pricing system.
- CarMax confirmed receipt of Starboard’s notice, said its board will present a recommendation on the nominees in due course, noted Barr starts March 16, and the stock remains roughly 42%–43% lower year over year around $42.