Notorious activist Nelson Peltz takes board seat at Unilever
Notorious activist investor Nelson Peltz has been appointed to the board of Unilever today after building a stake through his firm Trian Fund Management earlier this year.
The FTSE 100 Marmite-maker said this morning that Peltz will take up his position as a non-executive director and member of the firm’s compensation committee from the 20th July this year.
Peltz, who has overseen reforms at consumer goods giants including Procter & Gamble and Heinz, had reportedly met with Unilever boss Alan Jope and Chairman Nils Anderson in the past few months prior to taking his seat, after it was reported in January he had built a stake in the firm.
His seat comes after a period of high-profile run-ins between Unilever and its investors, with embattled boss Alan Jope moving to streamline the firm’s structure earlier this year amid a slew of criticism over a failed blockbuster$50bn bid for GSK’s consumer health division late last year.
Unilever revealed today for the first time that Trian’s stake was 1.5 per cent, making Peltz’s fund its fourth largest shareholder, according to Refinitiv data.
In a statement this morning, Peltz said Unilever had “significant potential” through its brands and geographical reach and he would be working with the firm to realise it.
“Trian has made a considerable investment in Unilever,” he said.
“We look forward to working collaboratively with management and the Board to help drive Unilever’s strategy, operations, sustainability, and shareholder value for the benefit of all stakeholders.”
Shares in Unilever surged over six per cent this morning on the news.
Peltz has built a reputation as a specialist activist in consumer goods firms, having stepped down from the board of Procter & Gamble last year after overseeing a turnaround in the firm’s fortune.
His stake in Unilever was revealed in January amid a period of intense pressure for boss Jope, who had come under fire from high profile investors for a flagging share price and the firm’s focus on sustainability.
Top-10 shareholder Terry Smith accused Jope of having “lost the plot” for his focus on sustainability across the brand portfolio.
After abandoning the takeover bid for GSK’s consumer division, Unilever has pushed through a slew of reforms including slashing 1,500 management jobs globally.
Who is Nelson Peltz?
Peltz burst into the consciousness of most UK investors when his hedge fund revealed a stake in confectioner Cadbury in 2007 before pushing for £1.7bn to be put back in shareholders’ pockets.
Since then, he and his firm Trian have built a fearsome reputation for turning round flagging consumer goods groups by building stakes and agitating from the inside.
At US multinational confectioner Mondelez, Peltz took a 2.8 per cent stake before securing a seat on the board and overseeing a 124 per cent boost in the firm’s share price.
Peltz then built a 1.5 per cent stake at US consumer goods group Procter & Gamble in 2017, fought a proxy fight for a board seat and presided over an 85 per cent surge.
Unilever has come under fire from investors for a lacklustre share price performance and analysts say the firm now looks ripe for Peltz’s carve ‘em up tactics.
“The fox would now appear to be inside the henhouse,” said Jefferies Martin Deboo when Trian’s stake in Unilever was first revealed.
While known for carve up and spin-off tactics in investment circles, Peltz hit the headlines for a different reason in recent months as his daughter tied the knot with Brooklyn Beckham.