Third Point Management Activist Presentation Deck
HOW DID WE GET HERE?
Incumbent Board has consistently failed Campbell shareholders
ā
Failed to execute on corporate strategy
Completely botched acquisition-fueled expansion into fresh food
Missed key consumer trends in soup (natural and organic ingredients, contemporary packaging) and then, to catch up, overpaid
for rival Pacific Foods
O
Failed to hold CEO accountable and failed to plan for succession
Incumbent Board lavished Denise Morrison with more than $60 million in total compensation during her tenure as CEO (2011 ā
2018) despite a series of strategic and operational missteps
O
Given struggles in fresh food and soup, incumbent Board doubled down on snacks and massively overpaid for Snyder's-Lance in
a "bet the company" transaction that has saddled the Company with a large debt burden
O
Failed to conduct proper strategic review
Company announced comprehensive review ("everything is on the table") in May 2018 in response to rapidly deteriorating
financial and operational performance
Company problems now exacerbated by lack of leadership since incumbent Board shockingly had no clear plan to replace her
when she abruptly stepped down at age 63
THIRD POINT
Incumbent Board then failed to take any bold actions and instead announced some divestitures (fresh food, global snacks) worth
approximately 10% of Company EBIT that largely preserved the status quo
Note: Campbell's "everything is on the table" comment from fiscal 3q18 earnings call (5.18.18)
Source: Third Point LLC; Company Materials; Bloomberg
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