Eighteen months after officially burying the hatchet in one of America’s most bitter proxy contests, Procter & Gamble Co (PG.N) CEO David Taylor and billionaire investor Nelson Peltz proclaimed their mutual respect on Thursday, underscoring how activists and corporations can end up working collaboratively…After an incredibly close proxy contest, which could have dragged on for months, Taylor invited Peltz to join the board, which he did in early 2018.
Since then, the men say the have communicated a lot as the company took Trian’s white paper to heart and hired consulting firm McKinsey for additional input on how the consumer products company, whose brands include Tide detergent and Pampers diapers, can move more quickly and nimbly.
“I found that the most important ingredient a CEO needs to have is to be a good listener,” Peltz said, adding: “Nobody has a monopoly on good ideas. We have an attitude at Trian, we steal any good idea. We’d rather be rich than right.”
The partnership is clearly paying off for all shareholders as P&G’s share price has surged 50% since before Peltz joined the board and has gained 32% in 2019 alone.