Global. P&G´s CFO, Jon Moeller, said that institutional investors he met with during the recent proxy battle involving hedge fund manager Nelson Peltz want the company to speed up a turnaround effort aimed at boosting sales and profits.P&G’s big investors want company to speed turnaround, CFO says Barrett J. Brunsman 20 October 2017 Business Courier of Cincinnati Online Procter & Gamble Co. CFO Jon Moeller said today that institutional investors he met with during the recent proxy battle involving hedge fund manager Nelson Peltz want P&G to speed up a turnaround effort aimed at boosting sales and profits. “I received very strong support for the plan that we’ve embarked on with a clear desire to see it (completed) sooner,” Moeller said. The message “to me is be even more deliberate, more quick in making the changes that we’ve been talking about.” The Cincinnati-based maker of consumer goods such as the new Gillette Treo razor (NYSE: PG) apparently staved off a Peltz bid for a board seat by less than 1 percent of the vote of shareholders in an Oct. 10 election. Both Moeller and CEO David Taylor met with some of P&G’s biggest investors in the months leading up to the election to argue against giving Peltz a seat on the 11-member board. “It’s been a great opportunity to engage with investors, both at the management level and the board level,” Moeller said during a conference call with market analysts following today’s reporting of P&G earnings for the first quarter of the 2017-18 fiscal year. “What’s been driven home to me is the passion that our investors have, both large and small – and that’s a great asset,” Moeller said. “Their interest in the company and their ideas relative to its success are also an incredible asset.” Peltz, who as CEO of Trian Fund Management oversees $3.5 billion worth of P&G stock, had argued for aggressive cost cutting. “We had a leadership team discussion on that just this week on how we can accelerate some of the productivity savings, and we’ll work to do that,” Moeller said. He noted that P&G’s first productivity program recently resulted in significant cost savings, which actually surpassed the company’s original goal of $10 billion. “That’s going to be less easy to do this time because more of the savings are coming from very capital-intensive redesign of our supply chain,” Moeller said. In February 2016, P&G committed to $10 billion in new productivity savings over the next five years. Much of that is to be reinvested to spur the growth of popular brands such as Pampers diapers and Tide detergent. Trian is P&G’s sixth-largest shareholder, and the Peltz campaign aimed at boosting the value of P&G’s stock resonated with some other large investors. The Oct. 20 Weekly Edition of the Business Courier features a cover story that focuses on what’s the next move for Taylor and P&G’s 95,000 employees, about 10,000 of whom work in Greater Cincinnati. Courier subscribers can read the story online by clicking here. Peltz claimed P&G’s workforce is hampered by a “suffocating bureaucracy,” and he argued for a restructuring of the company. P&G had countered that it already has made organizational changes in how its teams around the world operate. “I think there’s a strong desire on the part of both the management team and the organization itself to continue advancing some of the changes that we’ve made in the organization structure,” Moeller said. The chief financial officer was speaking from China, where he has spent the last several days reviewing operations in P&G’s second-biggest market after the United States. “We actively all here talked this week about …Version 2.0 and what are the next steps in that in that journey,” Moeller said of how P&G is revamping the company organization. P&G managers are discussing ways to accelerate the pace to market with innovation as a result of the new organizational structure, he said. The company has “a massive opportunity to be more deliberate about faster time to market but also faster globalization of great ideas and smart ideas, which has historically taken us some time,” Moeller said. “Nobody wants the results faster and better than us.” The big investors Moeller spoke to during the proxy campaign also expressed a desire “to increase the connection between the investor base, the management team and the board and make sure that we are fully benefiting from the perspective that they have,” Moeller said. Peltz had argued that P&G’s management and board were out of touch with shareholders, and that he could compensate for that if he were made a director. While the proxy battle got nasty at times, Moeller said that he thought the greater interaction P&G management had with large investors as a result of the campaign “has been a very useful and beneficial experience.” Did you find this article useful? Why not subscribe to Cincinnati Business Courier for more articles and leads? Visit bizjournals.com/subscribe or call 1-866-853-3661.http://hogar.intelect.com.mx/notes/global-p-g-cfo-jon-moeller-said-that-institutional-investors-he-met-with-during-the-recent-proxy-battle-involving-hedge-fund-manager-nelson-peltz-want-the-company-to-speed-up-a-turnaround-effort-aimed-at-boosting-sales-and-profitshttp://hogar.intelect.com.mx/@@site-logo/logoAllen.png
Global. P&G´s CFO, Jon Moeller, said that institutional investors he met with during the recent proxy battle involving hedge fund manager Nelson Peltz want the company to speed up a turnaround effort aimed at boosting sales and profits.
P&G’s big investors want company to speed turnaround, CFO says Barrett J. Brunsman 20 October 2017 Business Courier of Cincinnati Online Procter & Gamble Co. CFO Jon Moeller said today that institutional investors he met with during the recent proxy battle involving hedge fund manager Nelson Peltz want P&G to speed up a turnaround effort aimed at boosting sales and profits. “I received very strong support for the plan that we’ve embarked on with a clear desire to see it (completed) sooner,” Moeller said. The message “to me is be even more deliberate, more quick in making the changes that we’ve been talking about.” The Cincinnati-based maker of consumer goods such as the new Gillette Treo razor (NYSE: PG) apparently staved off a Peltz bid for a board seat by less than 1 percent of the vote of shareholders in an Oct. 10 election. Both Moeller and CEO David Taylor met with some of P&G’s biggest investors in the months leading up to the election to argue against giving Peltz a seat on the 11-member board. “It’s been a great opportunity to engage with investors, both at the management level and the board level,” Moeller said during a conference call with market analysts following today’s reporting of P&G earnings for the first quarter of the 2017-18 fiscal year. “What’s been driven home to me is the passion that our investors have, both large and small – and that’s a great asset,” Moeller said. “Their interest in the company and their ideas relative to its success are also an incredible asset.” Peltz, who as CEO of Trian Fund Management oversees $3.5 billion worth of P&G stock, had argued for aggressive cost cutting. “We had a leadership team discussion on that just this week on how we can accelerate some of the productivity savings, and we’ll work to do that,” Moeller said. He noted that P&G’s first productivity program recently resulted in significant cost savings, which actually surpassed the company’s original goal of $10 billion. “That’s going to be less easy to do this time because more of the savings are coming from very capital-intensive redesign of our supply chain,” Moeller said. In February 2016, P&G committed to $10 billion in new productivity savings over the next five years. Much of that is to be reinvested to spur the growth of popular brands such as Pampers diapers and Tide detergent. Trian is P&G’s sixth-largest shareholder, and the Peltz campaign aimed at boosting the value of P&G’s stock resonated with some other large investors. The Oct. 20 Weekly Edition of the Business Courier features a cover story that focuses on what’s the next move for Taylor and P&G’s 95,000 employees, about 10,000 of whom work in Greater Cincinnati. Courier subscribers can read the story online by clicking here. Peltz claimed P&G’s workforce is hampered by a “suffocating bureaucracy,” and he argued for a restructuring of the company. P&G had countered that it already has made organizational changes in how its teams around the world operate. “I think there’s a strong desire on the part of both the management team and the organization itself to continue advancing some of the changes that we’ve made in the organization structure,” Moeller said. The chief financial officer was speaking from China, where he has spent the last several days reviewing operations in P&G’s second-biggest market after the United States. “We actively all here talked this week about …Version 2.0 and what are the next steps in that in that journey,” Moeller said of how P&G is revamping the company organization. P&G managers are discussing ways to accelerate the pace to market with innovation as a result of the new organizational structure, he said. The company has “a massive opportunity to be more deliberate about faster time to market but also faster globalization of great ideas and smart ideas, which has historically taken us some time,” Moeller said. “Nobody wants the results faster and better than us.” The big investors Moeller spoke to during the proxy campaign also expressed a desire “to increase the connection between the investor base, the management team and the board and make sure that we are fully benefiting from the perspective that they have,” Moeller said. Peltz had argued that P&G’s management and board were out of touch with shareholders, and that he could compensate for that if he were made a director. While the proxy battle got nasty at times, Moeller said that he thought the greater interaction P&G management had with large investors as a result of the campaign “has been a very useful and beneficial experience.” Did you find this article useful? Why not subscribe to Cincinnati Business Courier for more articles and leads? Visit bizjournals.com/subscribe or call 1-866-853-3661.
P&G’s big investors want company to speed turnaround, CFO says
Barrett J. Brunsman
20 October 2017
Business Courier of Cincinnati Online
Procter & Gamble Co. CFO Jon Moeller said today that institutional investors he met with during the recent proxy battle involving hedge fund manager Nelson Peltz want P&G to speed up a turnaround effort aimed at boosting sales and profits.
“I received very strong support for the plan that we’ve embarked on with a clear desire to see it (completed) sooner,” Moeller said. The message “to me is be even more deliberate, more quick in making the changes that we’ve been talking about.”
The Cincinnati-based maker of consumer goods such as the new Gillette Treo razor (NYSE: PG) apparently staved off a Peltz bid for a board seat by less than 1 percent of the vote of shareholders in an Oct. 10 election.
Both Moeller and CEO David Taylor met with some of P&G’s biggest investors in the months leading up to the election to argue against giving Peltz a seat on the 11-member board.
“It’s been a great opportunity to engage with investors, both at the management level and the board level,” Moeller said during a conference call with market analysts following today’s reporting of P&G earnings for the first quarter of the 2017-18 fiscal year.
“What’s been driven home to me is the passion that our investors have, both large and small – and that’s a great asset,” Moeller said. “Their interest in the company and their ideas relative to its success are also an incredible asset.”
Peltz, who as CEO of Trian Fund Management oversees $3.5 billion worth of P&G stock, had argued for aggressive cost cutting.
“We had a leadership team discussion on that just this week on how we can accelerate some of the productivity savings, and we’ll work to do that,” Moeller said.
He noted that P&G’s first productivity program recently resulted in significant cost savings, which actually surpassed the company’s original goal of $10 billion.
“That’s going to be less easy to do this time because more of the savings are coming from very capital-intensive redesign of our supply chain,” Moeller said.
In February 2016, P&G committed to $10 billion in new productivity savings over the next five years. Much of that is to be reinvested to spur the growth of popular brands such as Pampers diapers and Tide detergent.
Trian is P&G’s sixth-largest shareholder, and the Peltz campaign aimed at boosting the value of P&G’s stock resonated with some other large investors.
The Oct. 20 Weekly Edition of the Business Courier features a cover story that focuses on what’s the next move for Taylor and P&G’s 95,000 employees, about 10,000 of whom work in Greater Cincinnati. Courier subscribers can read the story online by clicking here.
Peltz claimed P&G’s workforce is hampered by a “suffocating bureaucracy,” and he argued for a restructuring of the company. P&G had countered that it already has made organizational changes in how its teams around the world operate.
“I think there’s a strong desire on the part of both the management team and the organization itself to continue advancing some of the changes that we’ve made in the organization structure,” Moeller said.
The chief financial officer was speaking from China, where he has spent the last several days reviewing operations in P&G’s second-biggest market after the United States.
“We actively all here talked this week about …Version 2.0 and what are the next steps in that in that journey,” Moeller said of how P&G is revamping the company organization.
P&G managers are discussing ways to accelerate the pace to market with innovation as a result of the new organizational structure, he said.
The company has “a massive opportunity to be more deliberate about faster time to market but also faster globalization of great ideas and smart ideas, which has historically taken us some time,” Moeller said. “Nobody wants the results faster and better than us.”
The big investors Moeller spoke to during the proxy campaign also expressed a desire “to increase the connection between the investor base, the management team and the board and make sure that we are fully benefiting from the perspective that they have,” Moeller said.
Peltz had argued that P&G’s management and board were out of touch with shareholders, and that he could compensate for that if he were made a director.
While the proxy battle got nasty at times, Moeller said that he thought the greater interaction P&G management had with large investors as a result of the campaign “has been a very useful and beneficial experience.”
Did you find this article useful? Why not subscribe to Cincinnati Business Courier for more articles and leads? Visit bizjournals.com/subscribe or call 1-866-853-3661.
