Activist investor Nelson Peltz joins P&G board
Procter & Gamble is poised for big changes after announcing that it has appointed Nelson Peltz to its board despite the activist investor narrowly losing a months-long proxy fight.
Immediately after its annual meeting in mid-October, P&G said it beat Peltz by a slim margin, but a preliminary tally by an independent election inspector, released a month later, showed otherwise.
"Because the election results were so close, and because a large number of shareholders voted for Nelson Peltz to be a director, the board has engaged in numerous discussions with Mr. Peltz regarding a board seat," P&G said on Friday.
The company increased its board size by 2 to 13 — to accommodate Peltz and appoint a new director in Joseph Jimenez, CEO of drugmaker Novartis.
Peltz's appointment is the latest twist in a contest that saw the two sides collectively spend more than an estimated $100 million on mailings, phone calls and advertisements to woo investors.
Peltz's appointment is effective March 1 and the company also committed to re-nominate the investor as part of its board slate for next year's annual meeting, P&G said.
Read more about the proxy battle by clicking here.