Sleep Number (SNBR) shareholder Stadium Capital Management said Monday it has nominated four candidates for election to the company's board following the board's rejection of its proposals related to the search process for a chief executive officer.

In a letter to fellow shareholders, Stadium said it nominated Patrick A. Hopf, former interim CEO and chair of Sleep Number, as well as Jeffrey T. Jackson, Jessica M. Prager and Stadium Managing Partner Kevin Baker.

Stadium said it's Sleep Number's largest shareholder with about 11.7% of the company's shares. In its letter, Stadium said it expressed "grave concerns" last week over Sleep Number's alleged "financial underperformance, corporate governance and flawed CEO search process and made specific proposals to solve these pressing issues."

Sleep Number didn't immediately respond to a request for comment sent by MT Newswires.

In a Nov. 25 statement in response to Stadium's previous letter to shareholders, Sleep Number said the company welcomes shareholder input and suggestions.

"To that end, we have engaged extensively with Stadium and last November added two directors recommended by Stadium to the board," Sleep Number said. "Over the last 12 months, members of our board and leadership team have spoken with Stadium on more than a dozen occasions, and Stadium participated in four meetings with the board's Capital Allocation and Value Enhancement Committee."

Sleep Number said that on Oct. 30, it announced "comprehensive and thoughtfully considered changes to the company's leadership and governance, including a CEO transition and board refreshment and declassification."

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