US discount retailer Family Dollar Stores Inc today (29 September) named Edward Garden, one of the founders of Trian Partners, as a director - as part of an agreement that limits the investment firm's stake in the business.

The move comes after Family Dollar in March rejected a takeover bid from Trian, which is run by activist investor Nelson Peltz.

Instead, Family Dollar's board vowed to plough on with a strategic plan to accelerate revenue growth, expand operating margins and optimise its capital structure, including new store openings and a store renovation programme.

Its efforts appear to be paying off, after it posted record fourth quarter and full-year profits on Wednesday, and said it intends to open up to 500 stores next year.

The addition of Garden expands Family Dollar's board to eleven directors and is part of its commitment to "open dialogue with our shareholders," the retailer said.

Trian has an 8.29% stake in Family Dollar, but has now agreed not to boost its holdings above 9.9%.