Former P&G CEO John Pepper: Peltz Would Put 'Serious Brake' on Momentum
Former Procter & Gamble Co. (PG) - Get Report CEO John Pepper wrote a letter to the company's employees urging them to use their proxy votes to bar activist investor Nelson Peltz in his quest for board seats.
"I don't know Mr. Peltz. I can't predict with certainty how he would act on the P&G Board. But of this I do feel sure, and it worries me enormously -- my experience on five for-profit boards and what I have read ... convinces me that Peltz's entry on the Board risks putting a serious brake on our momentum, which could negatively impact our Company's growth for years to come," Pepper wrote.
Pepper wrote that Peltz has no record of driving sustained growth and allowing him to take on a leadership role at the company is a "very large" risk.
"This election is about more than a Board seat," Pepper wrote, "It is about the future of the Company we love."
Pepper offered his support for current CEO David Taylor, adding that he has "great confidence" in Taylor's abilities and leadership. Pepper said the current trajectory for the company is positive, and that Peltz's proxy fight with his Trian fund, even if it only won a single board seat, would greatly upset that upward trend.
"Let me cut to the chase ...We have the right CEO," Pepper said.
P&G stock traded down 0.22% to $92.33 in early trading Tuesday.
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