Trian Partners Activist Presentation Deck
Trian's Strategic Initiatives: Regain Lost Market Share Through
The Following Initiatives
5
Make M&A a
Growth Strategy
and a Core
Competency
6 Win In Digital
7
Address Insular
Culture
Improve
8 Corporate
Governance
(1)
April 24, 2017 meeting.
(2) See pages 9 and 82 of this presentation.
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P&G must acknowledge that others will inevitably come up with new ideas, new
opportunities for growth and new products that are on-trend with consumers
P&G must be proficient at acquiring small, mid-size & local brands and using its R&D and
marketing clout to take them to the next level
Small, mid-size & local brands are now better able to utilize the digital ecosystem (social
media, digital advertising, and online channels) to level the playing field with P&G
P&G must "up its game" and develop a decisive digital strategy by category (in areas of
social media, digital advertising, direct-to-consumer, subscription services, big data)
Increase the mix of external talent, including senior operating roles
David Taylor told Nelson that "We cannot bring in outside people at too senior a level or
they will fail"(1)
We are committed to work with David Taylor but future succession planning must be
enhanced by giving proper consideration to external candidates, from CEO down
through the ranks
We believe P&G's current Board has not delivered for shareholders:
9 out of 10 independent Directors saw P&G's stock significantly underperform
peers on their watch (average/median tenure of approximately 9 years)
3 CEO changes in 8 years; all were career P&G employees (half the Board
oversaw all 3 transitions) (²)
Nelson will look to make P&G best-in-class from a corporate governance perspective:
Nelson will add significant CPG experience to the Board (almost no CPG
experience among independent Directors today)
Fix compensation: Historically, management bonus payouts were high despite
significant underperformance.
Currently, management will potentially be rewarded for losing market share and
bottom quartile EPS growth under the long-term compensation plan
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