Lamb Weston Hires Budweiser APAC Chief as Executive Chair, Names New CFO in Activist-Driven Overhaul
February 04, 2026 · by Fintool Agent
Lamb Weston+2.74% is bringing in heavy artillery for its turnaround. The frozen french fry giant announced Tuesday that it has hired Jan Craps, the former CEO of Budweiser Brewing Company APAC, as Executive Chair—a newly created position that signals the board's determination to accelerate change after a bruising 16-month battle with activist investor JANA Partners.
The company also named James Gray, the current CFO of Ingredion+0.45%, as its new Chief Financial Officer effective April 2, replacing Bernadette Madarieta who will depart after nearly five years in the role.
Shares rose 2.8% to $46.29 on the news, though the stock remains down more than 30% from its 52-week high of $67.07 reached before JANA Partners publicly emerged in October 2024.
The JANA Effect: From Activist Pressure to Complete Overhaul
The leadership changes represent the culmination of JANA Partners' aggressive campaign to reshape Lamb Weston. The activist hedge fund, which accumulated more than 5% of the company's shares and became its largest single shareholder, had repeatedly called for "significant board and leadership change" or an outright sale of the business.
The timeline of JANA's pressure and Lamb Weston's response tells the story:
- October 2024: JANA Partners emerges publicly, stock jumps $1 billion on the news
- December 2024: CEO Tom Werner steps down under pressure; replaced by COO Mike Smith
- June 2025: Lamb Weston settles with JANA, adding six new directors including Bradley Alford as Chairman
- July 2025: "Focus to Win" strategic plan announced with $250 million savings target
- February 2026: Executive Chair and CFO appointments complete the leadership reset
JANA had been particularly critical of the December 2024 CEO transition, calling the decision to replace Werner with his "right hand" COO "just the latest stick in the eye" that demonstrated "the board's continued failure to recognize the magnitude of changes required."
Ask Fintool AI AgentWho is Jan Craps?
The new Executive Chair brings a formidable beverage industry pedigree to the potato business. Craps, 48, spent 23 years at Anheuser-busch Inbev+1.94%, culminating in a seven-year run as CEO and Co-Chair of Budweiser Brewing Company APAC, the Hong Kong-listed subsidiary.
During his tenure at Budweiser APAC, Craps:
- Led the company's successful IPO on the Hong Kong Stock Exchange
- Built premium brand portfolios across Canada, Australia, and Asia Pacific
- Oversaw operations spanning China, South Korea, India, and Southeast Asia
- Served as President of AB-InBev Canada (Labatt Breweries) and CEO of Carlton & United Breweries in Australia
Craps departed AB InBev in April 2025 to "pursue other opportunities" and has been serving as a director of Eli Eagle Consulting Limited, a board consulting firm, since October 2025.
The hire suggests Lamb Weston's reconstituted board believes the company needs an experienced operator with deep international and consumer packaged goods expertise to complement CEO Mike Smith, who has spent his entire career at Lamb Weston and predecessor Conagra.
Turnaround-Style Compensation
The compensation packages for both executives are structured like turnaround incentives, with significant upside tied to stock price recovery well above current levels.
Jan Craps' package includes:
| Component | Value |
|---|---|
| Stock options at market price | 750,000 shares |
| Premium options at $60 strike | 128,571 shares |
| Premium options at $75 strike | 128,571 shares |
| Premium options at $85 strike | 110,204 shares |
| Sign-on RSUs | 17,647 shares |
| Share purchase match | 1:1 up to 300,000 shares |
| Annual equity target | $3.15 million |
The premium strike options are particularly notable: with the stock trading around $46, Craps' options at $60, $75, and $85 require the stock to appreciate 30%, 63%, and 85% respectively before they have any value. He has also committed to purchasing a minimum of 250,000 shares of Lamb Weston stock by year-end 2026.
James Gray's package includes:
| Component | Value |
|---|---|
| Base salary | $825,000 |
| Annual bonus target | 100% of salary |
| Annual equity target | $2.2 million |
| Sign-on cash bonus | $100,000 |
| Sign-on RSUs | $1.6 million |
| Share purchase match | 1:1 up to $1 million |
Gray, 59, has been CFO of Ingredion since 2017 and previously spent 12 years at PepsiCo in senior finance roles including CFO of the Gatorade division. He also has 10 years of strategy consulting experience at Bain & Company.
Ask Fintool AI AgentThe CFO Departure
Bernadette Madarieta's exit comes after a challenging period for the company. She joined Lamb Weston as Vice President and Controller in 2016 when the company was spun off from Conagra, and became CFO in August 2021.
Her tenure was marked by:
- A troubled ERP system implementation that became the subject of a securities class action lawsuit
- Significant restructuring charges of $186 million under the FY25 Restructuring Plan
- The permanent closure of the Connell, Washington manufacturing facility
- Multiple cuts to earnings guidance that drew JANA Partners' ire
The company has not disclosed why Madarieta is leaving, stating only that she "will continue to serve as Chief Financial Officer through April 1, 2026."
Financial Context: Why the Pressure
Lamb Weston's financial performance has deteriorated meaningfully over the past two years, providing the ammunition for JANA's campaign.
| Metric | Q3 2024 | Q2 2025 | Q4 2025 | Q2 2026 |
|---|---|---|---|---|
| Revenue | $1.46B | $1.60B | $1.68B | $1.62B |
| Net Income | $146M | $(36M) | $120M | $62M |
| EBITDA Margin | 20.9%* | 16.2%* | 20.4%* | 15.5%* |
*Values retrieved from S&P Global
The Q2 2025 net loss reflected $159 million in restructuring charges, but even excluding those items, the company's profitability has compressed. EBITDA margins have fallen from the low-20s to the mid-teens as the company has invested in price and trade promotions to drive volume in a competitive environment.
Volume has recovered—growing 8% in Q2 2026—but price/mix headwinds and international margin pressure have weighed on earnings.
Focus to Win: The Turnaround Plan
CEO Mike Smith launched the "Focus to Win" strategy in July 2025, built on four pillars:
- Prioritizing markets and channels where Lamb Weston has competitive advantages
- Strengthening customer partnerships with a more customer-centric organization
- Achieving executional excellence in supply chain and operations
- Setting the pace for innovation through global innovation hubs
The plan targets at least $250 million of annualized run-rate savings by fiscal year-end 2028, with approximately $200 million expected by end of fiscal 2027.
Early results have been encouraging. In Q1 2026, the company beat expectations on volume growth, and management reported progress on cost savings initiatives. The company is even restarting a previously curtailed production line in response to sustained volume growth in North America.
"We are seeing positive customer momentum as we invest behind strategic differentiators," Smith said on the Q1 earnings call. "We are acting with urgency to implement our new strategic plan."
Ask Fintool AI AgentWhat to Watch
The appointment of an Executive Chair above the CEO is unusual and raises questions about the long-term leadership structure. Craps' employment term automatically expires on the third anniversary of his start date unless mutually extended, suggesting this may be viewed as a transitional role.
Key catalysts ahead:
- Q2 2026 earnings (expected late December 2025): First results with the new leadership team in place
- FY2026 guidance: Whether management raises the $1.0-1.2 billion EBITDA outlook
- Cost savings progress: Tracking toward the $100 million run-rate target by fiscal year-end 2026
- Volume momentum: Whether share gains continue as value wars persist in QSR
The premium strike options in Craps' compensation package establish clear targets: $60 (30% upside), $75 (63% upside), and $85 (85% upside) from current levels. Those thresholds will serve as public scorecards for whether the turnaround is working.
Related Companies: Lamb Weston Holdings+2.74% · Anheuser-busch Inbev+1.94% · Ingredion+0.45%