The independent proxy advisory firm ISS is recommending that Procter & Gamble investors vote in favour of activist investor Nelson Peltz in his bid for a board seat at the consumer giant.
ISS said in a report that Peltz’s firm, Trian Partners, presents “a compelling case that a limited degree of boardroom change would be beneficial. The addition of one well-qualified nominee, who holds a large economic stake, appears likely to have benefits that outweigh the potential risks.”
ISS’s move follows an earlier recommendation from Glass Lewis, the other of the two most-watched proxy advisory firms, that shareholders vote in favour of Mr Peltz joining the board.
Both Mr Peltz and P&G have been stepping up pressure on shareholders, urging them to vote in their favour at the annual meeting on October 10.
Mr Peltz bought a $3.5bn stake in P&G in February, amounting to 1.5 per cent of the company, and he launched a proxy fight in July in his bid to win a seat on the board. He has alleged “chronic underperformance” at P&G and blasted the pay of senior managers at the company.
P&G has argued that Mr Peltz would be a disruptive presence on the board and said it was committed to “preventing anything from derailing the progress we are making.”
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