10.09.12
Given a big stage, Procter & Gamble's annual meeting, activist investor William Ackman was a no-show. His absence gave Bob McDonald, P&G's chairman, president and CEO, the opportunity to defend his 40/20/10 growth strategy which calls for focusing on the company's 40 biggest markets and 20 biggest new products, while slashing $10 billion in costs, according to Reuters.
In recent months, Ackman has been in the news by calling for P&G management, and McDonald in particular, to boost the company's value. Ackman’s Pershing Square Capital Management hedge fund owns P&G shares worth about $1.8 billion and some options—about 0.79% of the company. P&G's share price has lagged market gains in recent years.
In recent months, Ackman has been in the news by calling for P&G management, and McDonald in particular, to boost the company's value. Ackman’s Pershing Square Capital Management hedge fund owns P&G shares worth about $1.8 billion and some options—about 0.79% of the company. P&G's share price has lagged market gains in recent years.
This isn't the first attempt by the hedge fund CEO to shake things up at a company. Ackman did just that at Canadian Pacific Railway Ltd and J.C. Penney Co Inc.