31st May 2022 18:11
(Alliance News) - The arrival of Nelson Peltz to the board of Unilever PLC on Tuesday is likely to pile on the pressure under Chief Executive Officer Alan Jope, in an appointment that was seemingly welcomed by investors.
The maker of Wall's ice cream, Dove soap and Hellmann's mayonnaise, among 400 others, appointed Peltz to its board as a non-executive director, starting July 20. Peltz is chief executive officer and a founding partner of Trian Fund Management LP. Funds managed by Trian have 37.4 million Unilever shares, a 1.5% stake, both companies confirmed.
He was credited with bringing a strong hand to US consumer goods firm Procter & Gamble Inc where he was chair until last year.
Reports have been swirling since January that the activist investor was building a stake in the firm, with shares jumping whenever his name was mentioned.
Peltz has a history of investment in consumer goods companies, having taken stakes in everything from Cadbury to Pepsi and Schweppes.
Under Jope's stewardship, Unilever has endured years of poor returns for shareholders amid a persistent focus on sustainability at the Ben & Jerry's ice cream maker. Further, Unilever's ill-judged approach for GSK PLC's consumer health division did little to help his battered reputation with some shareholders.
AJ Bell investment director Russ Mould said: "The consumer goods firm has been struggling in the wake of the failed takeover of GSK Consumer Health and investors have welcomed the move warmly.
"Inviting Peltz in is only likely to ramp up the pressure on beleaguered chief executive Alan Jope and we may now see the company advance plans to streamline the business and address governance concerns."
The stock closed up 9.4% at 3,825.00 pence on Tuesday, the best performer in the FTSE 100.
By Arvind Bhunjun; [email protected]
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