P&G is defending the strength and ability of its current structure, as support continues to emerge for the appointment of Nelson Peltz to its Board.
The company is continuing to encourage its shareholders to vote ‘blue’ to stop the Trian Partners Founder and CEO from “derailing” its progress.
P&G stated: “The P&G Board has been overseeing the most significant transformation in the Company’s history. We have strengthened and streamlined our portfolio, simplified our organisational structure and significantly enhanced P&G’s productivity.”
It continued: “Change is not warranted when a highly engaged Board is overseeing a plan that is working. We firmly believe adding Nelson Peltz to the P&G Board would derail our progress and therefore urge shareholders to vote the blue proxy card today.”
Heinz Board alumni back Peltz
On 27 September, five alumni of the H.J. Heinz Company Board of Directors sent a letter to P&G Directors reflecting on their experience of working with Peltz, who similarly fought a proxy contest to gain his position on the Heinz Board.
The alumni said that despite initial resistance and a hard-fought proxy contest in 2006, Peltz added much value to the company respecting “the views of his fellow directors and proved to be a constructive force and an important cohesive and collegial voice in the boardroom”.
ISS and Glass Lewis show support
Meanwhile, proxy advisory company ISS encouraged P&G shareholders to vote in favour of Peltz’s appointment.
“The addition of one well-qualified nominee, who holds a large economic stake, appears likely to have benefits that outweigh the potential risks,” ISS stated.
Similarly, proxy advisory firm Glass Lewis also made public its position on Peltz’s appointment, stating that shareholders had “adequate cause” to vote him onto the Board.
P&G's shareholder meeting will be held on 10 October.