Trian Fund Management will collaborate with management: Nelson Peltz

Billionaire investor Nelson Peltz on U.S. activist investors, conflict of interest at proxy advisory firms, U.S. tax reforms.

Nelson Peltz, the billionaire investor has a message for CEOs in America – you do not have to fear for your jobs when I call on you.

Wanting to get this message straight to America’s Chief Executives, Peltz, 75, said, unlike other activist investors, Trian Fund Management, his investment vehicle, prefers to work alongside management, including in companies such as Mondelez International Inc, Bank of New York Mellon Corp, to boost sales, cut costs and earn more for shareholders.

Worried on how the tactics of his peers are impacting a sector of the investment world which is attracting newcomers who are eager to cash in on the riches of the industry, Peltz wants them to earn values that veterans in the industry, which include giants such as Carl Icahn and him, have cultivated in the last decades.

“The word activist has come to mean a fight, it has come to mean short term,” said Peltz. “We are really not that concerned about the next quarters numbers because we will be around for the next 28 of them.”

In a wide ranging interview with Reuters, Peltz called the technical aspects of proxy voting “busted” and praised U.S. President Donald Trump for getting things done; he also casts worries on the sway of prices that e-commerce giant, Amazon.com Inc holds over the goods that it sells.

Peltz also made it lucidly clear that Trian nurtures a sense of the ownership mentality in the board room and usually sticks around for 7 years.

Known for his white papers full of suggestions, Peltz highlighted his desire to collaborate with Procter & Gamble Co where he will join its CEO, David Taylor, in its board in March.

“What we do is come with a plan to make a company better. We never come with a plan to throw out the CEO or to embarrass anyone,” said Peltz.

This is particularly noteworthy in the wake of activist investors, including Mick McGuire, Bill Ackman and Paul Hilal ousting CEOs at firms such as Buffalo Wild Wings Inc, Chipotle Mexican Grill Inc and CSX Corp in 2017.

Peltz came down heavily on how U.S. investors are required to elect boards, worrying about conflicts of interest at proxy advisory firms and how some big shareholders vote.

“The proxy plumbing is busted,” said Peltz.

He was all praise for Trump, especially for his tax reform.

“I‘m a results-oriented guy and I‘m happy with what he’s done. The markets have been great,” said Peltz.

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Categories: Creativity, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

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