P&G investor stoush risks “derailing progress”

P&G buildingUS-based FMCG giant Procter & Gamble (P&G) is facing an investor stoush ahead of its Annual General Meeting next month, with an activist investor seeking a seat on the company’s Board with a raft of proposals that could adversely affect the multinational’s global business.

Nelson Peltz, the billionaire investor behind Trian partners and a former member of the Mondelez Board has criticised management for not sufficiently cutting costs, or creating growth via innovation.

P&G’s current Board, alongside CEO David Taylor, is opposed to Peltz joining the board, telling the market that his views are “flawed and outdated”.

Taylor has been overseeing an aggressive cost-reduction program at P&G over the last twelve months, which he believes has left the company “profoundly different, much stronger, and more profitable”.

The Olay, Oral-B, Gillette, Vicks and Tide brand owner is also decentralising its global operations to give smaller markets more control over local conditions.

“We firmly believe now is not the time to risk derailing our progress by adding Trian’s Peltz to the P&G Board,” the company said. “Peltz’s flawed suggestions and outdated views underscore his fundamental misunderstanding of the P&G of today. While we won’t belabor all of these flawed suggestions.”

Management is reportedly spending millions in its campaign to prevent Peltz from joining the Board, which could drive significant changes to the way the management runs the global business.

Taylor later told American outlet CNBC that Peltz’ proposals are “very dangerous”.

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