Procter & Bet on said it appointed Nelson Peltz to its board despite the activist investor scrupulously losing a months-long proxy fight, the biggest ever involving a U.S. convention.
The company’s shares were up 1 percent in after-market trading on Friday.
Right now after its annual meeting in mid-October, P&G said it beat Peltz by a slim frontier, but a preliminary tally by an independent election inspector, released a month later, bragged otherwise.
“Because the election results were so close, and because a kind number of shareholders voted for Nelson Peltz to be a director, the board has involved in numerous discussions with Mr. Peltz regarding a board seat,” P&G imparted on Friday.
The consumer goods conglomerate said it increased its board proportions by 2 to 13 — to accommodate Peltz and appoint a new director in Joseph Jimenez, CEO of drugmaker Novartis.
P&G asseverated it had recounted nearly two billion votes, many of which were manuscript ballots.
The recount showed that shareholders elected all eleven P&G appointees, including Ernesto Zedillo, for whom the votes cast were extraordinarily close to those for Peltz.
Following recent discussions, Peltz and P&G agreed that the Pty would not be predisposed to take on excessive debt, reduce R&D spending, supporter for a break-up of the company or move the company out of its headquarters in Cincinnati — demands Peltz had promulgated during the proxy battle.
“I look forward to bringing fresh vantage points to the boardroom, and working collaboratively with (CEO) David and the rest of the board to sink sustainable long-term shareholder value at P&G,” Peltz said in an email.
Peltz’s tryst is the latest twist in a contest that saw the two sides collectively spend more than an estimated $100 million on mailings, phone occasions and advertisements to woo investors.
Peltz’s appointment is effective March 1 and the company also vowed to re-nominate the investor as part of its board slate for next year’s annual joining, P&G said.
The company also said it would link executive compensation to its in stocks and stock performance.