“We don’t need someone to come in and try to figure out yet another new plan,” Pepper wrote in a letter to P&G shareholders. “We just got one. Now is the time to execute.”
Pepper's comments followed an Aug. 28 letter that P&G sent to shareholders ahead of the Oct. 10 annual shareholders meeting.
Peltz founded Trian with Peter W. May and Edward P. Garden. Peltz has a net worth of more than $1.5 billion, according to Forbes.
As part of his plan to get P&G growing again, Peltz is calling for P&G to reorganize into three business units under a "lean holding company," according to analysts. Under his plan, P&G's operations would be divided into beauty, grooming and healthcare; fabric and home care; and baby, feminine and family care. Moreover, in addition to a board seat he's been seeking, Peltz said he would like more oversight over the company's cost savings plan, and would like to see a study conducted to find out why the "innovation machine is broken."
P&G did not issue a comment regarding Peltz's white paper. In it, Peltz criticized CEO David Taylor, but stopped short of calling for his removal. In recent years, P&G has been dogged by activist investors who have bemoaned the company's stagnant stock price and sluggish moves to remain ahead of the competition. Back in 2013, Bob McDonald was ousted as chairman, president and CEO and replaced by former CEO AG Lafley who oversaw the 2015 sale of several P&G brands to Coty—a move designed to reduce P&G's portfolio to 65 brands in 10 categories.
Lafley re-retired in 2016 and was replaced by Taylor, who joined P&G in 1980 and rose to be group president of Global Beauty, Grooming and Health Care before becoming CEO. He also spearheaded efforts to save billions of dollars through a five-year cost-savings plan that is said to have the backing of four previous CEOs and the P&G board.