P&G's Ex-CEO Opposes Activist Investor's Election To Board Of Directors

Procter & Gamble Co.'s former CEO A.G. Lafley said shareholders should not elect activist investor Nelson Peltz to the company's board of directors. According to Lafley, Peltz's proposal to reorganize the company, which includes turning P&G into a holding company, would be a “huge step backward” and a mistake. Peltz, who has acquired $3.5-billion worth of stock in P&G, said he wants to cut the company's corporate employees by 90 percent. Peltz is the CEO of hedge fund company Trian Fund Management, which has a history of purchasing a large stake in a company, securing a board seat, and pushing for company reorganization in order to raise the stock price.