In case you missed it, Trian Partners, an activist investor, has mounted a proxy contest with Procter & Gamble. Their goal is to force Nelson Peltz onto P&G’s Board of Directors where he claims he will more capably lead the company. I am including a link to Nelson Peltz’s Wikipedia page where you can find a relatively neutral history of Mr. Peltz’s corporate dealings.
Procter & Gamble has estimated that this proxy contest will cost them $35 million. Trian Partners will spend an estimated $25 million on this contest.
Here is an open letter from David Taylor discussing the board’s opinion on this issue. We highly recommend that you read through the entire letter. This letter does a great job of explaining why you’re receiving two sets of proxy materials this year.
What we are doing
We too have been disappointed in Procter & Gamble’s growth and apparent lack of leadership over the last few years. Lately, they have made numerous changes that should get them on more solid ground. We agree with David Taylor that the P&G board is best equipped to make the changes necessary to get the ship righted. Therefore, we will be voting along with the board of directors concerning this issue. Additionally, we are taking their advice and not voting any of the “white” proxy voting cards that Trian Partners is sending out.
If you have any concerns or would like to discuss this in more detail, please feel free to call us at 513-588-8080 or email firstname.lastname@example.org.