Procter & Gamble's Board Could Use a Fresh Member

Trian seeks seat for Peltz on P&G board

Trian seeks seat for Peltz on P&G board

P.&G.is increasing its online presence and has fought back with price cuts, but its stock price has lagged competitors' and the Standard & Poor's 500 index in the previous year, and - as Mr. Peltz points out - over the last decade.

"P&G's Board and management team are keenly focused on executing the company's strategy to drive innovation, accelerate organic sales and volume growth, improve productivity and cost structure, and strengthen P&G's organization and culture", the company said in a formal statement.

"While P&G leadership says they are addressing the underperformance issue, shareholders have heard similar promises in the past and results have not improved", Trian said in the filing. For the last two years, executives urged investors to be patient. Dan Loeb's Third Point disclosed last month that it had amassed a $3.5 billion stake in Nestle, encouraging the company to sell its stake in cosmetics maker L'Oreal and increase leverage for share buybacks.

Trian says that Peltz will nominate the director that he replaces, which would expand the Board to a new total of 12 members.

NASA Successfully Completes Probe On Pluto
The mapping and rendering were done by Paul Schenk and John Blackwell of the Lunar and Planetary Institute in Houston. Pluto's haze layer shows its blue color in this picture taken by the Ralph instrument on the New Horizons spacecraft.

In 2015, Trian ran a fight against DuPont. Trian got no seats, but the CEO was out five months later and Dupont announced a merger with Dow Chemical that will lead to a breakup. Trian, whose plans were reported earlier by the Wall Street Journal, said Monday it still hopes it can avoid a proxy fight. Since it started in 2005, it has only had two prior proxy fights - with H.J. Heinz Co. and DuPont Co. - and there were almost 10 years between them.

Trian has said that if it were to win a seat it would strive to create an extra one and renominate the person who lost, to ensure no existing members lose their positions. In 2012, Bill Ackman's Pershing Square Capital Management disclosed a $1.8 billion stake in the company and pushed to replace then-CEO Bob McDonald, who was ultimately replaced the following year.

Trian, which describes itself as one of P&G's largest shareholders, said the Cincinatti-based consumer goods group had suffered "disappointing results over the past decade" and that it wanted to "help the company address the challenges it is facing". Currency exchange rates have diluted the impact of the $10 billion in cost cuts P&G delivered over the past five years, and now it seems fair "to question the benefit of re-investing those savings, particularly as sales and earnings growth have only decelerated over this time frame, according to Lieberman". Meanwhile, the company is losing market share in various categories yet it's the only company in the world that boasts over 20 billion-dollar brands.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.