Why Nelson Peltz Wants P.&G. to See Him as a ‘Constructivist’
At the time, his firm declared, “Trian believes G. E.
is executing a bold transformation that will generate attractive stockholder returns
in the years ahead as the company reshapes its portfolio from a broad conglomerate.”
Two years later, Jeffrey R. Immelt, the chief executive of General Electric and a man whom Trian repeatedly called a “friend,” found himself announcing
that he would be “retiring” from the company — just after G. E.
Part of Mr. Peltz’s charm is that, unlike some other activists, he shuns using huge leverage, and he does not demand big buybacks and dividends.
be replaced; NOT seeking to replace directors.”
And yet, chief executives should take note that Mr. Peltz’s playbook is often the same: He makes a large,
multibillion-dollar investment in a company and tells those in management that he supports them.
On Monday, he made his latest play — starting what has been described as the biggest
proxy contest in history — by seeking a seat on the board of Procter & Gamble.
The longtime financier, who has made his name investing in companies like Heinz and DuPont and agitating for change, prefers to think of himself as a “constructivist,” someone who doesn’t necessarily seek to break up a company,
but rather to bolster its operations and corporate structure.
