P&G appoints Peltz to board despite losing proxy battle

Procter & Gamble said This specific appointed Nelson Peltz to its board despite the activist investor narrowly losing a months-long proxy fight, the biggest ever involving a U.S. company.

The company’s shares were up 1 percent in after-market trading on Friday.

Immediately after its annual meeting in mid-October, P&G said This specific beat Peltz by a slim margin, however a preliminary tally by an independent election inspector, released a month later, showed otherwise.

“Because the election results were so close, in addition to 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 consumer goods conglomerate said This specific increased its board size by 2 to 13 — to accommodate Peltz in addition to appoint a fresh director in Joseph Jimenez, CEO of drugmaker Novartis.

P&G said This specific had recounted nearly two billion votes, many of which were paper ballots.

The recount showed of which shareholders elected all eleven P&G nominees, including Ernesto Zedillo, for whom the votes cast were extremely close to those for Peltz.

Following recent discussions, Peltz in addition to P&G agreed of which the company would certainly not be predisposed to take on excessive debt, reduce R&D spending, advocate for a break-up of the company or move the company out of its headquarters in Cincinnati — demands Peltz had made during the proxy battle.

“I look forward to bringing fresh perspectives to the boardroom, in addition to working collaboratively with (CEO) David in addition to the rest of the board to drive sustainable long-term shareholder value at P&G,” Peltz said in an email.

Peltz’s appointment is usually the latest twist in a contest of which saw the two sides collectively spend more than an estimated $100 million on mailings, phone calls in addition to advertisements to woo investors.

Peltz’s appointment is usually effective March 1 in addition to the company also committed to re-nominate the investor as part of its board slate for next year’s annual meeting, P&G said.

The company also said This specific would certainly link executive compensation to its sales in addition to stock performance.

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