Red Robin Gourmet Burgers Inc. (Nasdaq:RRGB) Looking for New CEO

Red Robin Gourmet Burgers Inc. (Nasdaq:RRGB) has capitulated to shareholders who have demanded more say in some of the decisions by the board members and company. As a result, Red Robin has now started a search for a new CEO per the demands of the activist shareholders.

The specifics of the deal are a new committee will be formed by the board for the purpose and responsibility of "identifying, interviewing, negotiating with and recommending for hire a new chief executive officer."

If the committee isn't able to find a new CEO by the end of 2010, they will be required to report to shareholders on how they are progressing, and agree to stay in place until a new CEO for the company is found.

Along with Chairwoman Pattye Moore, the committee will be made up of three new directors: Robert Aiken, Lloyd Hill and Stuart Oran. These new directors are also part of the agreement to name three new directors to the board, which will be the same three sitting on the new committee.

The activist shareholders negotiating with the board for the deal are institutional investors Spotlight Advisors LLC and Clinton Group Inc.

Much of this has come about from the way former CEO Dennis Mullen was decided to be compensated by the board. While Mullen remains a board member for the company, he was replaced as Chairman by Pattye Moore.

As part of the agreement, the company won't be allowed to partake in cash tender offers or the re-pricing of stock options unless shareholders give their approval to do so.

Red Robin is a casual restaurant business which has 430 company-owned or franchised restaurants operating.