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P&G appoints “very dangerous” director to Board

P&G buildingAmerican FMCG giant Procter & Gamble (P&G) has appointed activist investor Nelson Peltz to its Board, despite campaigning vigorously to keep him out for months.

Peltz, who will now serve as a director despite losing a vote to join the Board in mid-October, was accused by chairman David Taylor earlier this year of having “flawed suggestions and outdated views” that would “derail progress” if he was installed in a leadership position.

Taylor also told American outlet CNBC that Peltz’ proposals are “very dangerous”, but the FMCG giant has now backtracked on that sentiment, recognising that Peltz was only defeated by a narrow margin and that shareholders do feel that new ideas are required to position the company for growth.

“We respect Peltz as a highly engaged shareowner and investor, and look forward to his contributions as a member of P&G’s Board,” said David Taylor, P&G’s chairman, president and chief executive officer. “We have had constructive discussions with Peltz and we are committed to working together for the best interests of all P&G shareholders.”

P&G has increased its Board size by two as part of the move, also appointing Joseph Jimenez, CEO of drug-business Novartis, as a director. Peltz, who has previously outlined a plan to decentralise P&G into distinct regional units to give smaller markets more control over local conditions, said he’s looking forward to working with Taylor.

“P&G is a great company with tremendous potential,” said Peltz. “I am looking forward to working closely with David Taylor and the Board toward our shared goals of driving market share growth and improved margins to create more value for all P&G shareholders.”

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