Procter & Gamble Hits Back at Trian

Procter & Gamble Company (PG) responded early Friday to a statement that activist investor Trian Fund Management received support for its nomination of Nelson Peltz to the company’s board from proxy advisory firm Glass Lewis.

“The P&G board has done its homework and concluded that Nelson Peltz is not the right director for P&G. Mr. Peltz lacks specific qualities P&G is looking for in board members,” the company said, adding that the the board and management team “strongly” recommend shareholders vote for all of P&G’s directors at the meeting.

Earlier, Trian Fund Management cited Glass Lewis as saying that “investors have an opportunity to encourage fresh discussion through the election of a qualified, well-established shareholder candidate backed by what we believe to be cogent, well-framed arguments and a set of strategic initiatives that should, at the very least, set the table for a more candid evaluation of P&G’s risks and opportunities.

Procter & Gamble’s response was that “Glass Lewis fails to recognize that P&G has delivered consistently strong operating results over the last five years, excluding the effects of currency, while executing its transformation,” adding that “We believe that putting the wrong person like Mr. Peltz on the P&G Board represents a risk of derailment.”

Separately, Trian also said in a regulatory filing that it is “disappointed” with the presentation that the company made on Sept. 19, “which is filled with a significant number of material data errors, calculation errors and misrepresentations of Trian’s and Nelson Peltz’s track records.”

“P&G has apparently tasked its army of advisors with discrediting Nelson Peltz and Trian, in order to redirect the conversation away from the real issues at hand — in particular P&G’s ongoing market share losses and bottom quartile shareholder returns,” Trian said.

Trian said that its goal from now until the shareholder vote on Oct. 10 is to “focus on the critical issues facing P&G and the eight strategic initiatives detailed in our white paper that we believe can help P&G regain lost market share and once again achieve best-in-class performance.”

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with's FREE daily email newsletter.