Who is Arthur T. Demoulas? Market Basket CEO suspended over ‘misconduct’, alleges ‘hostile takeover’ of company

The Board of Directors of Market Basket has suspended Chief Executive Officer Arthur T. Demoulas with immediate effect as the company conducts an internal investigation into his conduct, its board said on Wednesday.

The Board of Market Basket alleged that the conduct of Demoulas and several other executives threatened the company's operations.

The board said it is investigating “credible allegations that Mr. Demoulas began to plan a disruption of the business and operations of Market Basket with a work stoppage”.

Demoulas however denied the allegations and said that the action was a ‘hostile takeover’ of the company.

“The company is currently operating at its peak performance and the notion that this board is going to conduct an investigation is a farcical cover for a hostile takeover,” his spokesperson Justine Griffin said.

Demoulas' daughter Madeline and son Telemachus were among the other executives who were placed on leave.

Here is everything you need to know about Market Basket CEO Arthur T. Demoulas.

A year after his graduation from Bentley College, in 1974, Demoulas joined DeMoulas Super Markets Board of Directors.

He eventually reached the position of the Vice President of the company. He resigned from his position following a court order in 1999 but remained on the board.

In 2014, Arthur T. Demoulas was forced out of the company's board when Market Basket was controlled by his cousin, Arthur S. Demoulas. His ouster caused massive protests as customers decided to boycott the chain and non-union employees went on a strike.

Within two months, the board was to sell their shares to Arthur T. and his sisters and he returned as the CEO of Market Basket.

Demoulas will remain on full salary and continue to share in company distributions while the investigation proceeds, the company said. Market Basket during this time will be run by the existing management team.

The board further stated that the CEO “has also resisted an appropriate succession plan for Market Basket, asserting that he has the unilateral right to appoint his children to succeed him without any consideration of the view of the Board or the majority owners of Market Basket”.