Boar’s Head, a supplier of delicatessen meats, cheeses and condiments, is also a company so secretive that its chief financial officer admitted under oath he did not know who the chief executive officer was, has been dragged into public view due to a deadly listeria outbreak that killed 10 people and hospitalized dozens more.
Founded in 1905, Boar’s Head is controlled by two clans: the Brunckhorsts and the Bischoffs. Internal strife between the factions dates to the early 1970s when one heir died before other members of his generation, and much of his 25% stake in the company went to the other side of the family rather than to his son, Eric Bischoff. Despite decades of working at Boar’s Head, Eric Bischoff could never regain his father’s share, leading to numerous lawsuits over ownership and control.
Despite a staggering estimated $3 billion in annual sales, three family members make most major decisions at the closely held company, and only a handful of executives have access to its financial results. In a 2022 deposition, the company’s former president revealed he lacked the authority to act independently. The chief financial officer echoed this sentiment, explaining, “The owners run the company.”
The recent listeria outbreak has put Boar’s Head’s (mis)management under unprecedented scrutiny. Two members of Congress sent a letter asking the U.S. Department of Agriculture and the Justice Department to determine whether Boar’s Head should face criminal charges. And yet, no member of the Brunckhorst or Bischoff family has made a public statement. Instead, a meat recall notice and apology on the company’s website was simply signed, “Sincerely, Boar’s Head.” It will be interesting to see how this situation plays out as this crisis casts a spotlight on the fractured family governance that operates behind closed doors.
I found this article particularly interesting, given our class discussions on the shareholder being the repository of all authority. It also somewhat parallels the Rogers and Murdoch cases we discussed in class.
Questions I have after reading this article: What corporate governance measures could have prevented the internal family infighting and subsequent mismanagement of the company? Would implementing an independent board of directors have helped Boar’s Head navigate both internal conflicts and external crises more effectively? How can family interests and control be balanced with professional management and operational challenges?
Nassauer, S. (2024, October 6). Inside the half-century feud dividing the Boar’s Head family. The Wall Street Journal. https://www.wsj.com/business/boars-head-ownership-battle-brunckhorsts-bischoffs-93a163c6?mod=Searchresults_pos2&page=1
Farrell, M. (2024, October 13). The secretive dynasty that controls the Boar’s Head brand. The New York Times. https://www.nytimes.com/2024/10/13/business/boars-head-owners-listeria-outbreak.html
DeLauro, R., & Blumenthal, R. (2024, September 26). DeLauro & Blumenthal refer Boar’s Head to DOJ for responsibility in listeria outbreak, call on USDA to bolster oversight [Press release]. U.S. House of Representatives. https://delauro.house.gov/media-center/press-releases/delauro-blumenthal-refer-boars-head-doj-responsibility-listeria
Boar’s Head. (2024, September 13). July 2024 product recall information. https://boarshead.com/products-recall-2024
Hi David! Thanks for this very interesting post. It seems that Boar’s Head has now added a banner with their safety guidelines at the very top to ensure consumers that they can still safely consume their products (https://boarshead.com/foodsafety).
While reading your comments, I was thinking about how easy it is for us to actually perceive companies as their own people on a daily basis (even without knowing that they have legal status as such) to the point that the CFO of Boar’s Head didn’t even know the CEO’s name! It feels like having a company take on that person-like persona in the public eye makes it easier for CEOs–especially secretive CEOs like this one–to not have serious safety issues like a lethal listeria outbreak affect other companies that they might have a hand in. I certainly couldn’t tell you the names of more than a handful of CEOs of big companies, so if someone did something sketchy and then moved somewhere else, I would probably never know in my day to day life as a consumer. Management transparency is definitely a critical aspect of corporate law that should be encouraged.