LONDON, UK / ACCESSWIRE / December 19, 2017 / Active-Investors issued a free report on The Procter & Gamble Co. (NYSE: PG) ("P&G"), which is readily accessible upon registration at www.active-investors.com/registration-sg/'symbol=PG as the Company's latest news hit the wire. On December 15, 2017, the Company announced the certified results of the voting held at its 2017 Annual Shareholders Meeting (ASM) on October 10, 2017, with regards to the election of directors to its Board. The Company also shared the action plan based on the shareholders' input received during the 2017 ASM. Sign up now for our free research reports at:
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Addition of Nelson Peltz to Company's Board
The results of the certified count have led to the election of all 11 candidates nominated by the Company to the Board. They include Francis Blake, Angela Braly, Amy Chang, Kenneth Chenault, Scott Cook, Terry Lundgren, W. James McNerney, David Taylor, Margaret Whitman, Patricia Woertz, and Ernesto Zedillo.
The certified count indicated that Nelson Peltz, who has been engaged in an active proxy war with the Company to gain a seat on the Company's Board, has received 50% of the total votes. The votes in his favor were quite close to the number of votes received by P&G's candidate Ernesto Zedillo. Considering the various discussions with Nelson regarding a Board seat and the close margin of votes, the Company has decided to appoint him as a Director. His appointment as Director to the Company's Board is effective from March 01, 2018 onwards. The Company feels that although it may not agree with Nelson on matters like taking on excessive leverage, reducing R&D spending, splitting of the Company or moving the Company out of Cincinnati, it is committed to working with Nelson in the best interests of its shareholders.
The Company has also committed that it will nominate Nelson as the Company's representative during the election for the Board's seats at the 2018 ASM.
One of the major inputs received from many of its shareholders during the proxy war was the need for the Company to refresh its Board's composition. The Company has decided to act on the input and after an extensive search, appointed Joseph Jimenez, the CEO of Novartis to the Company's Board. His appointment is effective March 01, 2018, and brings with him extensive experience in consumer products, healthcare, and international business, which will greatly benefit P&G.
Additionally, the Company's shareholders had indicated that changes need to be made in its executive compensation practices. Accordingly, the Company has modified its Performance Stock Program to include relative sales growth metrics and a Total Shareholder Return modifier to ensure that awards match performance and are in-line with external competitive benchmarks. The Company plans to implement the changes in executive compensation in fiscal year 2018-2019 and is reviewing requisite changes.
The Company has shared that its business strategy and plans are working and delivering results. However, it is implementing various steps to ensure continued productivity to fuel future growth and increase returns to its shareholders.
About Nelson Peltz and his proxy war for a Board seat
Nelson Peltz is the CEO and Founding Partner of Trian Fund Management, L.P, which he founded in 2005. Trian Fund owns approximately $3.5 billion of P&G's shares. Trian Fund filed a preliminary proxy statement with the US Securities and Exchange Commission (SEC) in July 2017 for the election of Nelson to P&G's Board at the 2017 ASM. Trian Fund believed that being one of the largest shareholders of the Company it was disappointed with the Company's performance in the last decade and wanted to assist the Company with some of the challenges faced by it. The main areas of concern that Trian Fund had with P&G were poor returns to its shareholders, declining market share, excessive costs and a bureaucratic environment. As a Board Member, Trian Fund believed that Nelson Peltz's vast experience in turning around consumer companies and increase long-term shareholder value would be of great value to P&G.
Following the proxy voting at the Company's 2017 ASM on October 10, 2017, the preliminary vote count indicated that Nelson had not been elected to the Board. However, these had been preliminary results and these results needed to be certified by the independent Inspector of Elections. On November 15, 2017, P&G had disclosed that the results of preliminary vote count tabulated by IVS Associates, Inc., the Independent Inspector of Elections, had indicated that Nelson lead in the Director votes by a margin of approximately 0.0016% of shares compared to votes for Ernesto Zedillo. At that time, these results could have been reviewed and challenged by both P&G and Trian Fund. On November 22, 21017, however, the Company had said that it would not challenge the results of the preliminary vote count by IVS Associates and would await the final certified results. On the same day, Trian Fund had responded saying that irrespective of the correctness of the results and P&G's efforts to keep Nelson out of the Company's Board, the Company's Board should revisit its decision and offer a Board seat to Nelson immediately. Trian Fund's rationale had been that given the number of votes received by Nelson from P&G's shareholders, the shareholders wanted him on the Company's Board.
About The Procter & Gamble Co.
Cincinnati, Ohio-based P&G was founded by William Procter and James Gamble in 1837. It is one of the largest multinational consumer goods conglomerate with operations spread across 70 countries. Some of the leading consumer brands owned by the Company include Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, Vicks®, and Whisper®.
Stock Performance Snapshot
December 18, 2017 - At Monday's closing bell, The Procter & Gamble's stock slightly fell 0.01%, ending the trading session at $91.88.
Volume traded for the day: 7.40 million shares, which was above the 3-month average volume of 7.13 million shares.
Stock performance in the last month - up 2.95%; previous six-month period - up 2.51%; past twelve-month period - up 8.50%; and year-to-date - up 9.28%
After yesterday's close, The Procter & Gamble's market cap was at $234.34 billion.
Price to Earnings (P/E) ratio was at 24.55.
The stock has a dividend yield of 3.00%.
The stock is part of the Consumer Goods sector, categorized under the Personal Products industry. This sector was up 0.8% at the end of the session.
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