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July 18th, 2012 by TopGun Press

P&G Shareholders May Not Want to Run This Race – Brendan Wood International Shareholder Intelligence Reports

NEW YORK, NY, July 19, 2012 (TopGun Press) – Bill Ackman has had a hot hand of late with Pershing Square’s activism at Canadian Pacific Railway. Pershing Square’s intervention galvanized high levels of shareholder frustration and discontent with Senior Management. Procter & Gamble shareholders may not be aligned with Ackman’s brand of activism which so clearly unfolded in the CP case. Brendan Wood’s Shareholder Confidence Index tells a different story in that shareholders say they want greater productivity from P&G’s longstanding franchise but express confidence particularly in P&G’s CFO and Senior Management.

At June 30th the Brendan Wood Worldwide Shareholder Confidence Index ranks Proctor & Gamble’s Senior Management as 5th in the industry and ranks 24-year P&G veteran Jon Moeller as the industry’s 4th best CFO. Investor critique is tougher on CEO Robert McDonald and the Board, ranking them 18th and 10th respectively. Investors ranked P&G’s Strategy 15th. These results likely warrant action. Since the Board is held accountable for Strategy and the Performance Culture led by the CEO, it seems unlikely that P&G’s Board will adopt the recalcitrance and denial which set the stage at CP for the uprooting of the CEO and several board members.

“Although Brendan Wood International produces its Worldwide Shareholder Confidence Index real time, when activists surface, BWI partners monitor shareholder reaction very closely. From what we have seen in the preliminary findings, P&G is less fertile ground for activism”, according to Salvatore Scamardo, Managing Director of Brendan Wood International/New York. “However, preliminary data clearly indicates that while P&G may benefit from some sort of internal upgrading at the C-Level and boardroom, the organization is viewed by investors as an A-Team, needing a boost in leadership. Investors feel that this iconic American/Global Corporation may be shortchanging them on the potential of the franchise. If Pershing Square’s involvement facilitates improvements in strategy and returns, shareholder confidence will likely increase substantially”.

Leading up to the CP proxy vote this past May, BWI Reports projected a 93% shareholder vote in favor of a change agenda. At the actual vote, shareholders elected Ackman 92.7%. “My partners intend to monitor P&G’s shareholder base with similar care” says Scamardo.

Related Links:

Salvatore Scamardo
Managing Director, Brendan Wood International/New York

Stewart Borden
Partner, Brendan Wood International

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