Proxy firm weighs in on DuPont board.
Byline: Rich Steeves
To some, this time of year is baseball season. To others, it's a chance for spring-cleaning or the end of the school year. But for big business, it is proxy season, and proxy advisers are continuing to flex their muscles and weigh in on board and governance matters regarding some of America's biggest companies.
The latest example of this concerns DuPont. Proxy adviser Glass Lewis & Co. has come down in favor of Nelson Peltz for a position on DuPont's board. Peltz is the chief executive of an activist investor firm, Trian Fund Management LP, and Glass Lewis believes that Peltz is the right person to help steer the ship.
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In recent years, the chemical giant has fallen short of earning expectations and faced a stagnation of revenue. There are a total of four Trian nominees for the 12-seat board, but Glass Lewis singles out Peltz as its choice, though another proxy firm, Institutional Investor Services, backed two Trian nominees, including Peltz.
"We believe Trian has identified legitimate concerns at DuPont, primarily related to operational execution and management accountability," Glass Lewis wrote. "We believe Trian has presented a compelling argument that Mr. Peltz is capable of working constructively with the incumbent nominees during DuPont's ongoing transformation process in order to drive greater returns for shareholders."
This has been a heated battle from the beginning, as DuPont has resisted having a top executive from Trian on its board, though Trian has stated that it does want a top person to take the board sat.
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|Publication:||Inside Counsel Breaking News|
|Date:||Apr 30, 2015|
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