After many months of fighting, Nelson Peltz is getting a seat on the Procter & Gamble board.
The news dropped Friday evening, and Peltz is expected to officially join the board March 1.
“We respect Nelson Peltz as a highly engaged shareowner and investor, and look forward to his contributions as a member of P&G’s Board,” said David S. Taylor, P&G’s chairman, president and chief executive officer. “We have had constructive discussions with Nelson and we are committed to working together for the best interests of all P&G shareholders.”
Taylor issued an open letter to shareholders Friday, saying that the company and Peltz both agreed to certain things, like not substantially reducing research and development spending, not breaking up the company and not moving P&G out of Cincinnati, and had “committed to work together with Mr. Peltz for the best interests of all shareholders.”
Peltz owns about 1 percent of P&G through Trian Fund Management. After management talks failed to result in a board seat nomination earlier in 2017, Peltz launched a proxy fight, alleging that P&G has an insular culture, should reorganize and consider acquiring small, growing brands. Since, P&G acquired Native, a natural deodorant business.
During the fight, P&G held to its “irresistible superiority” stance — that by making products that are better than the competitors, it will win. The company also said it has been able to grow existing businesses, like Head & Shoulders, or through developing things like scent beads (now a $500 million business).
“P&G is a great company with tremendous potential,” said Peltz, who takes his place on the board March 1. “I am looking forward to working closely with David Taylor and the board toward our shared goals of driving market share growth and improved margins to create more value for all P&G shareholders.”
“P&G is on the right track with its transformation,” said lead director Jim McNerney. “Nelson Peltz has more than 40 years of business and investment experience, and we welcome his input and the additional perspective he will bring to the boardroom.”
In addition to Peltz, P&G also appointed Joseph Jimenez, chief executive officer of Novartis, to its board as part of a goal to “refresh the board’s composition,” Taylor said in the open letter.