Nelson Peltz's Trian Fund Management LP said Monday it's seeking a seat for its billionaire chief executive at Procter & Gamble Co's (pg) board as it looks to push the company to take more drastic steps to revive sales.
Trian, which describes itself as one of P&G's largest shareholders, said the Cincinatti-based consumer goods group had suffered "disappointing results over the past decade" and that it wanted to "help the company address the challenges it is facing".
Peltz, an activist investor and co-founder of Trian, also owns $3.3 billion worth of P&G stock and is looking to gain representation at the board of directors.
Trian Partners called for "decisive action that goes above and beyond what the company has presently committed to do".
After months of discussions, Peltz's requested to join the board of directors was officially rejected.
"P&G's Board and management team are keenly focused on executing the company's strategy to drive innovation, accelerate organic sales and volume growth, improve productivity and cost structure, and strengthen P&G's organization and culture", the company said in a formal statement. The company had a market value of $222.77 billion, as of Friday's close.
Trian said in the filing it was launching the proxy fight because of P&G's continuing underperformance and the lack of tangible evidence that the company had embraced initiatives discussed at various meetings between the parties.
Company executives have been implementing a strategy to sell off lower-selling brands and refocus P&G on its 65 top-selling labels, including Pampers and Tide. P&G is expected to hold its annual shareholder meeting in October.
P&G's shares have underperformed peers such as Colgate-Palmolive and Johnson & Johnson, as well as the broader S&P 500 index, in the past decade.