P&G, Peltz Get Ready to Rumble: What You Need to Know About Tuesday's Vote
Posted in: Uncategorized
What may seem like the biggest election ever for a small electorate ends Tuesday morning as Procter & Gamble Co. shareholders vote on whether to give activist investor Nelson Peltz a seat on the board.
For all the fuss, there is actually not as much at stake as you might think. Peltz, who runs the hedge fund Trian Partners, says he’d move to reinstate the board member he’s seeking to boot former Mexican President Ernesto Zedillo and doesn’t want to fire P&G Chairman-CEO David Taylor or break up the company. Even if he wins, he won’t have the votes to change things on a board he’s lambasted for overseeing years of stagnation or declining market shares.
Yet investors have been bombarded with communication from both sides in the costliest proxy fight ever, with P&G having pegged its spending at $35 million and Trian at $25 million. Both sides have blanketed shareholders with big heaps of mail along with robo-calls and live calls, search and other digital ads. Trian even advertised on Sunday’s NFL broadcasts in Cincinnati.
Post a Comment