Brooklyn Beckham’s billionaire father-in-law and activist investor Nelson Peltz is set to join the board of Unilever.
Peltz joins as non-executive director from July and will serve as a member of the board’s compensation committee, heaping pressure on the maker of Dove soap and Hellman’s mayonnaise as it reviews its strategy.
Unilever shares jumped 7 per cent to over 3,737.00p on news that Peltz has amassed a 1.5 per cent stake in the company.
Appointment: Nelson Peltz will join the board of Unilever as a non-executive director from July
Shares in Unilever have fallen well below their 2020 pandemic troughs this year and are still down 30 per cent from an all-time high reached in 2019.
The appointment of Peltz is likely to put pressure Unilever for a bigger revamp of its strategy, following its unsuccessful £50billion attempt to snap up GSK’s consumer healthcare arm earlier this year.
Peltz said in a statement today: ‘We look forward to working collaboratively with management and the board to help drive Unilever’s strategy, operations, sustainability, and shareholder value.’
Peltz, who is chief executive and founding partner of New York-based hedge fund Trian, is known for his interest in consumer-oriented firms and proposing operational changes at his portfolio companies.
Back in 2018, Trian called for a slew of changes at Unilever’s bigger rival P&G, with Peltz eventually joining its board following a months-long proxy fight.
‘We have held extensive and constructive discussions with him and the Trian team and believe that Nelson’s experience in the global consumer goods industry will be of value to Unilever,’ Unilever chair Nils Andersen, said.
Analysts at RBC and Credit Suisse welcomed Peltz’s appointment, saying he could effect positive changes to company culture and financial performance.
RBC analysts said: ‘If not that, at least the presence of an activist investor can drive collaboration amongst Unilever’s other shareholders and raise Unilever’s profile in the media to increase accountability of ongoing changes.’
Unilever said Trian Fund Management manages funds with interests in 37.4 million Unilever shares, or about 1.5 per cent of the group.
Fellow Unilever investor Waverton Investment Management welcomed Peltz’s addition to Unilever’s board.
‘Trian… can add fresh outsider ideas,’ Waverton fund manager Tineke Frikee, said.
Russ Mould, investment director at AJ Bell, added: ‘Unilever has given in to the pressure and handed activist investor Nelson Peltz a seat on its board.
‘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 CEO Alan Jope and we may now see the company advance plans to streamline the business and address governance concerns.’
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