Is Nelson Peltz Just Pelting Procter & Gamble?

With a little more than a month to go until Procter & Gamble Co.'s (NYSE: PG) shareholder meeting on October 10th, Trian Fund Management, L.P., is lobbying investors to vote famed activist investor Nelson Peltz onto the company's board. Peltz is known for offering up bold solutions to prod large corporations out of share-price doldrums. And he often begins a campaign for a board seat with a hail of publicity, backed by a comprehensive white paper that holds little back in detailing a company's deficiencies.

But what's less well known is that Trian Partners tends to stick around as a corporate investor, counter to the perception that activist investors are in for quick profits to the detriment of long-term corporate success. According to Trian Partners, when Peltz joins a corporate board, its average investment holding period extends to roughly seven years.

Additionally, there's no clear evidence that Peltz's presence has been destructive on the various boards he's joined. Many executives who initially opposed his participation in their corporate decision making, like outgoing Mondelez International CEO Irene Rosenfeld, now serve as references for the value of having Peltz as a board advisor.

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Source: Fool.com