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STORY: Shares of Bed Bath & Beyond plummeted as much as 22% on Wednesday, after the home goods retailer announced it had replaced its CEO, Mark Tritton.

It's part of a management shake-up the company said was meant to reverse a slump in its business.

Bed Bath & Beyond's first-quarter net sales slumped 25%, rounding off a year of sales slipping below market expectations.

The management shake-up comes just a few months after billionaire activist investor Ryan Cohen criticized the company for overpaying top executives and failing to reverse market share losses.

Cohen, who is also the chairman of GameStop, had disapproved of Tritton's $27 million compensation over the last two years, saying it was far more than what top bosses earned at bigger retailers, including Macy's.

The writing may have been on the wall in March, when Cohen said that "Tritton should recognize that chief executives who are awarded outsized compensation and seek frequent publicity also invite much higher expectations when it comes to growth and shareholder value creation."

On Wednesday, Bed Bath & Beyond named the head of the strategy committee and independent director Sue Gove as Tritton's replacement on an interim basis.