The Story:
Activist investor Nelson Peltz tried to win a seat on the board of Procter & Gamble, a consumer products company worth approximately $235 billion.
The Controversy:
P&G has a pantry full of famous brands, including Bounty, Gillette, Crest, Tide, and Pampers. But Peltz, through his alter ego Trian Fund Management, contends that the brands are aging, that P&G has introduced nothing analogous into the market in recent years, and that this is due to stifling corporate bureaucracy.
All three of the major shareholder advisory firms have supported Peltz’s challenge. One of them, Glass Lewis, said, “We consider Mr. Peltz’ experience, which includes packaged goods, consumer brands, marketing and structural pivoting, is well-established and germane to P&G.”
The Thing to Know:
The vote was very close, and the result is not official, but it appears as of early afternoon Tuesday, October 10, that the management slate has won: Peltz will not take his seat.
