https://www.cnbc.com/2017/10/11/cramer-on-owning-ge-stock-rarely-have-i-felt-this-stupid.html
7 replies (most recent on top)
Wow, the daggers are out from every angle. This is better than TV.
If you want to get rid of Trian make them dump the stock by driving down the share price in conjunction with by back scheme. Though they may sit on the board kick them off when they get annoying.
At this point getting sold off probably is a good thing. Probably better benefits and job security and leadership and and and
Why aren't we learning from others.
This is a statement from P experience in driving innovation; health care experience; online, offline and “omni-channel” retail experience and innovation; international experience, particularly in developing markets; and gender and ethnic diversity. Mr. Peltz also has a history of behavior and hidden agendas that result in derailing companies.
The P&G Board and management team have talked to numerous directors, CEOs and senior executives who have worked with Mr. Peltz, and positive recommendations were not forthcoming. People would only speak candidly about their experiences with Mr. Peltz if those discussions were kept confidential, for fear of retribution. However, one CEO whose board includes Mr. Peltz has publicly disclosed what it’s like to deal with activists such as Mr. Peltz: "I think the single biggest disconnect that I found is that many activists simply sit in conference rooms and do calculations and analysis, independent of the reality of the fact that we are dealing with human beings and people’s lives.”4 With an army of analysts accompanying Mr. Peltz, it’s not surprising that CEOs report spending up to 25% of their time answering his questions or debating misinformed ideas.4
Mr. Peltz recently suggested that growing earnings per share is unimportant.5,6 Leading shareholder return in the household and personal care categories in which P&G competes requires balanced top- and bottom-line growth and high cash efficiency. Ideas like these can derail companies by getting them out of balance, eroding shareholder value.
The consequences of derailment can be quite damaging. The weighted average shareholder return of companies on which Mr. Peltz serves as a board member is 4%.3 One company has NEGATIVE 9% returns. That company has had negative volume growth every year since Mr. Peltz joined the board, and current year-to-date organic sales growth is NEGATIVE 1.0%, versus POSITIVE 3.9% the year before Mr. Peltz joined.
So what’s the harm of one person on P&G’s Board? It can be substantial, if it’s the wrong person. We have done our homework. Mr. Peltz is a smart investor. He is welcome as an engaged shareholder, and we will continue to listen to him. We fully expect shareholders to hold P&G accountable to deliver returns, but putting the wrong person like Mr. Peltz on the P&G Board of Directors represents a risk of derailment and damage that should be prevented.
“In light of the vast array of actions the firm is undertaking, we fail to see a major impetus behind Peltz’s approach and little to suggest that his oversight would accelerate change.”
- Erin Lash, Analyst7
You think Aviation will get sold off??
I’m glad I got out a few years ago! They are going to sell the businesses off.
My Daddy Says, Everything is 'on the table' at General Electric for Trian, You guys are screwed now, he he he...