Breaking News
0

Activist Peltz to CEOs: We'll work with you

Stock MarketsJan 09, 2018 10:10PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO - Nelson Peltz founding partner of Trian Fund Management LP. speak at the WSJD Live conference in Laguna Beach, California

By Svea Herbst-Bayliss

NEW YORK (Reuters) - Billionaire investor Nelson Peltz has a message for America's corporate chiefs; when he calls they do not automatically have to fear for their jobs.

Peltz's $13 billion Trian Fund Management is widely regarded as one of the world's most influential activist investment firms, holding board seats at companies from Wendys Co (O:WEN) to General Electric Co (N:GE).

Unlike other activists who often unseat CEOs, Peltz, 75, told Reuters Breakingviews on Tuesday that he prefers to work alongside management in making companies like Bank of New York Mellon Corp (N:BK) and Mondelez International Inc (O:MDLZ), raise sales, cut costs and earn more.

And he worried how rivals' tactics are impacting a sector of the investment world that has attracted newcomers who are eager to cash in on the riches industry veterans like Peltz and Carl Icahn have earned over the last decades.

"The word activist has come to mean a fight, it has come to mean short term," Peltz said, adding "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, he called the technical aspects of proxy voting "busted", praised President Donald Trump for getting things done, and worried electronic commerce company Amazon.com Inc (O:AMZN) holds too much sway over prices for the goods it sells.

But mostly he sought distinguish Trian by saying that the firm usually sticks around for seven years and brings an ownership mentality to the board room.

Known for writing white papers full of suggestions, Peltz said he wants to work collaboratively with Procter & Gamble Co (N:PG) chief David Taylor where he will join the board in March after a bitter, expensive and long fight for a seat.

"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," Peltz said.

This is particularly noteworthy as CEOs at companies including Chipotle Mexican Grill Inc (N:CMG), Buffalo Wild Wings Inc (O:BWLD) and CSX Corp (O:CSX) exited in 2017 amid pressure from activist investors Bill Ackman, Mick McGuire and Paul Hilal.

Peltz criticized 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," he said.

Turning to Trump, Peltz praised him for tax reform. "I'm a results-oriented guy and I'm happy with what he's done. The markets have been great."

Activist Peltz to CEOs: We'll work with you
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email