Matthews International has announced a series of corporate governance changes in response to mounting pressure from activist hedge fund Barington Capital Group, as a heated proxy battle nears its conclusion, according to a report by Reuters.

The Pittsburgh-based company, best known for its coffin making and memorial products business, said it will appoint a new independent board chair by next year’s annual meeting, add a director with expertise in batteries and EV technology, and propose an amendment to its bylaws to ensure all board members stand for election annually.

Barington, which owns roughly 2% of Matthews’ stock, has been leading the campaign for boardroom reforms, arguing that fresh leadership is needed to unlock shareholder value. The hedge fund has nominated three directors to replace incumbents up for election this year, citing the need for a strategic overhaul — including the potential divestiture of underperforming assets — and a transition from longtime CEO Joseph Bartolacci.

Matthews, valued at approximately $800m, saw its share price rise more than 3% on Friday to close at $25.73, as investors weighed the company’s governance concessions. However, Barington’s CEO and Chairman, James Mitarotonda, dismissed the moves as "too little, too late," calling them a last-minute attempt by the board to maintain the status quo.

With the 20 February vote approaching, Barington has gained support from all three major proxy advisory firms, which have recommended electing the hedge fund’s slate of nominees.