Procter & Gamble Co (NYSE:PG) is in an proxy fight with activist investor Trian Fund Management.
Here are a few things to know about the proxy fight between Procter & Gamble Co and Trian.
- Trian obtained a $3.5 billion, or roughly 1.5%, investment in PG back in February.
- The investment firm is seeking to add Nelson Peltz, its own CEO, to the company’s Board of Directors.
- This move comes after Peltz was denied a seat on the Board last week.
- Trian says that Peltz will nominate the director that he replaces, which would expand the Board to a new total of 12 members.
- The investment firm also says that it isn’t seeking to break Procter & Gamble Co up, or replace CEO David Taylor.
- However, it does want to bring change to the company, which includes cutting cost and management.
- It notes that the company’s own efforts to accomplish these goals haven’t done enough and that new members are needed on the Board.
- Trian doesn’t typically take part in proxy fights and often simply provides advice.
- Despite this, it believes that adding Peltz to the Board will help PG “increase sales and profits, regain lost market share, and address the company’s structure and culture.”
- Trian and Procter & Gamble Co were close to reaching an agreement that would allow Peltz to join the Board if public goals weren’t met, but the discussions fell apart in May.
PG stock was up slightly as of Monday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.