P&G to Peltz: You Are Not Entitled to a Board Seat

The consumer goods giant said that activist investor Nelson Peltz is out of touch with the company's current operations.
By Giovanni Bruno ,

Consumer goods giant Procter & Gamble (PG) - Get Report has pushed back against Nelson Peltz's attempts to attain a seat on the company's board of directors, saying the investor was not entitled to a seat, Reuters reports.

P&G also stated that Peltz was being advised by the wrong people who are out of touch with the company's operations.

""Why not?" is not a compelling rationale to add Mr. Peltz to the P&G Board. "Why not?" appears to be the extent of Mr. Peltz's reason for board membership. This is simply not a sufficient standard," Chief Executive David Taylor said. "Joining P&G's board is not an entitlement."

Peltz, whose hedge fund Trian has accumulated about a 1.5% stake in the maker of Tide detergent, launched a proxy war after five months of discussions with P&G management failed to get him a board seat.

P&G responded saying that Peltz offered no new "actionable ideas" that the company hadn't already performed.

The company also criticized Peltz, who is being advised by former P&G CFO Clayton Daley, for taking advice from an executive nearly a decade removed from the company.

"This ... appears to be compounding Trian's fundamental misunderstanding of P&G today and the operating environment the company faces," Taylor said.

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