PROCTER & GAMBLE Co — Proxy Solicitation & Information Statement 2017

Sep 15, 2017

DFAN14A 1 p17-1872dfan14a.htm PROCTER & GAMBLE CO.

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a)

of the Securities Exchange Act of 1934

Filed by the Registrant ¨

Filed by a Party other than the Registrant þ

Check the appropriate box:

¨	Preliminary Proxy Statement
¨	Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
¨	Definitive Proxy Statement
þ	Definitive Additional Materials
¨	Soliciting Material Under Rule 14a-12

The Procter & Gamble Company

(Name of Registrant as Specified in Its Charter)

Trian Fund Management, L.P. Trian Fund Management GP, LLC Trian Partners, L.P.

Trian Partners Co-Investment Opportunities Fund, Ltd. Trian Partners Master Fund, L.P. Trian Partners Parallel Fund I, L.P. Trian Partners Master Fund (ERISA), L.P. Trian Partners Strategic Investment Fund-A, L.P.

Trian Partners Strategic Co-Investment Fund-A, L.P.

Trian Partners Strategic Investment Fund-D, L.P. Trian SPV (Sub) XII L.P.

Trian Partners Fund (Sub)-G, L.P.

Trian Partners Strategic Fund-G II, L.P.

Trian Partners Strategic Fund-G III, L.P.

Trian Partners Strategic Investment Fund-N, L.P.

Trian Partners Strategic Fund-K, L.P.

Trian Partners Strategic Fund-C, Ltd.

Nelson Peltz

Peter W. May

Edward P. Garden

Clayton C. Daley, Jr.

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

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Trian Fund Management, L.P. has posted to www.RevitalizePG.com, and from time to time may distribute, the following press release (the “ Yacktman Press Release ”) issued by Yacktman Asset Management (“ Yacktman ”) which contains a public letter from Yacktman to the Board of Directors (the “ Board ”) of The Procter & Gamble Company in support of Nelson Peltz's election to the Board. A copy of the Yacktman Press Release is filed herewith:

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Yac k t m an As s et M a n a g e m e n t I s s u es O p en L e t t er t o t h e P r oc t e r & G a mb l e Bo a r d o f Di r e c t or s

F i r m S uppo r ts th e E le c ti o n o f N e l s o n Pe ltz t o th e B oa r d

Beli e v e s th e C u rr en t P r o xy Con t e s t is U nnece ss a r y, E x pen s ive an d N o t in th e Best I n t e r e s t o f S ha r eho ld e r s

A U S T I N , T e x a s , Sep t . 14, 2 0 17 / P R N e w sw i r e / - - Y ac k tman A s s e t Ma n ag e me n t t od ay pub l i cly r e l e a se d a letter t o t h e B o ard o f Dire c t o r s o f th e Pr o cter & Gamb l e C o m p a n y ( N Y S E : PG). In th e let t e r, Yack t m an ex p r e s s e d i t s su pp ort f or t h e el e ction o f N e l s on P e l t z of Trian F un d Ma n age me n t, L. P . As o f J un e 3 0, 201 7 , Y ac k tman o w n e d 15 , 456, 6 96 s h ar e s o f P& G .

Text o f Yac k t m an As s et M a n a g e m e n t’s S e p t e m b er 14, 2 0 17, L e t t er t o th e P & G Bo a r d o f Di r e c t or s :

T h e B o ard o f Di r e ct o rs

T h e P r o cter & G am b le Co m p a n y

1 Pr o cter a n d Gamble Plz

CINCI NN A T I, O H 45 2 02 - 3315

D e ar M e m b e r s o f th e B o ar d :

We are wri t i n g t o d ay b e ca u s e we i n tend t o v ote ou r s h ar e s in fa v o r of th e e l e ction o f N e l s on P e ltz of Trian F un d Ma n age m e n t, L .P., t o P r o cter & Gambl e ’ s b oard o f d ir e ct o r s . As o f J un e 3 0, 201 7 , Y ac k tm a n A s s e t Ma n age m e n t o w n e d 15 , 456, 6 96 s h a r e s o f P & G , w h ich r e p r e se n t s more t h an $1.3 b illion in v al u e .

Y ac k tman b e l i e v es th a t , a f ter y e ars o f bu s i nes s an d sh a re p rice und e r p e r f o r m a n c e , P& G sh ar e h ol d e rs de se r v e a h ighly e n gage d , sh a r e h ol d e r - f oc u se d v o i ce in th e b oar d r o om – a r e p r e se n t a t i v e w h o will d ev ote t i m e t o P& G b y aski n g th e t o u gh qu es ti on s , d em a nd i n g s tr on g e x e c u ti o n f r om ma n ag e me n t, an d e n s u ring p r op e r alig n me n t b e tw e e n c o m p e n s a t ion an d pe r f o r m a n c e . In th e 2006 B e rk s h ire H a th away A nnu al R e p ort, W a rren B u ffe tt s t a ted a n e w b oard m e m b e r s h o u l d , “ b e o w n e r - o r i e n ted, bu s i ne s s - s a v v y , i n ter e s ted an d t r u ly i n de p e nd e n t.” Y a c k t m an b e li e v e s th at N e l s on P e ltz p o s s e s s e s a ll of th e s e c h arac t e r i s tic s .

O u r f irm h as o w n e d sh a r e s in P& G for m o r e th an 25 y e ar s . We are l on g - t e rm, p a t i e n t i nv es t o r s , an d h a v e a l w a y s s tri v e d t o b e a c on s tr u cti v e an d su pp orti v e sh a r e h ol d e r. Si nce our fo u nding i n 1 9 92, t h i s is t h e f i rst t i me we h ave wr i t t en a b o ut an e l ect i on o f di r ectors f o r one of our p o rt f o li o inv es t m e n t s . W e feel c o mp e ll ed t o d o s o b eca us e of t h e d e p t h o f our co n v i ct i on t hat it i s in t h e b es t i nt e re s t of all P & G i nv es t o rs to h ave N els o n P e l tz jo i n t he b o ard.

While we have great respect for P&G’s directors and management, we respectfully disagree with the company’s decision not to add Mr. Peltz to its board and instead to conduct – at shareholders’ expense – a costly and distracting proxy fight.

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In e v al u a t i n g Mr. P e lt z’ s c and i d ac y , we c on s i d e r e d th e foll o w i n g fact o r s , a m o n g o t h e r s :

· S h ar e h ol d e r/o w n e r p e r s p e ct i v e in th e b oard roo m : Mr. P el tz r e p r e s e n ts a n o w n e r of m o r e th an $3 b il l i o n in P& G stoc k . Curr e n t o u t s i d e b oard m em b e rs h a v e n o m e a n i n g f u l e c o n o m ic i nve s t m e n t in th e compa ny ’ s su c c e s s o r f a i l u r e .

· Co n s um e r p r odu cts op e rati on al e x p e rti s e : For y e a r s , in ou r v i e w , P& G h as s tr u ggl e d t o p r odu ce bu s i n e s s r es u l t s an d sh a r e h ol d e r r e t u r n s c om me n s u ra t e w ith i t s p o t e n ti a l. Mr. Pe l tz b ri n gs r e l e v a n t o p e rati on al a n d fina n cial ma n age m e n t e x p e rti s e t o P& G . For e x a m p l e , h is a c qu i s iti o n o f a faili n g S n a pp le from Q u a k e r O a ts an d th e ra p id tu r n aro un d o f th e c o m p a n y a re st ud i e d in bu s i n es s s c h oo l s a r oun d t h e world.

· I n ves t me n t tr a ck r e cor d : We r u n a c on c e n tr a ted p ortfolio w h ich, in r e c e n t y e ar s , h as ov e r la pp e d with i n v e s t m e n ts b y Mr. Pe l t z’ s fi r m , Trian Ma n ag e me n t, in B an k of N e w York M e llon Cor p or a ti on , P e p s i C o an d S y s co Cor p orati on , in add iti o n t o P& G . In th es e sit u a t io n s , w e fo un d Mr. Pe l t z ’ s i n v ol v e m e n t to b e a s ignif i ca n t b e n ef it to l on g - t e r m sh a r e h ol d e r s .

P & G’ s m a n ag e me n t h as arg ue d th e c o m p a n y is o n th e right t rack a n d impli e d th at an y c h a n ge in th e b oar d ’ s m a k e u p c ou ld d e rail its d ir e c ti o n . In ou r v i ew , on e v oi c e o n a b oard c ann ot up e n d a succ es s f u l s tr a tegy, bu t it can se r v e a s a fr e s h an d v al u a b le p e r s p e ct i v e . Ma n age m e n t p r o fe ss e s c on c e rn th at Mr. Pe l tz c ou ld b e a d i s tr a ction if e l e c t e d . M e a n w h i l e , ma n ag e me n t h as alr e a d y b ee n d i s tr a c ted by c h oo s i n g t o wage a p r o xy fig h t t h at is c o s ti n g m ore th an $35 m i llio n , n ot to me n ti o n a n e n ormo u s a m o u n t of s e n ior m a n a g e m e n t tim e .

We are n ot sw a y e d b y ma n age m e n t’s e n t hu s ia s m for t h e l a s t qu arter o r two of fina n cial r es u lt s , o r t h e c o m p a ny ’ s r e c e n t s t o ck p ri c e p e r f o r m a n c e . Ma n age m e n t tea m s , w he n c on f r on ted with a p r o xy fig h t, h a v e i n c e n ti v e s t o p r odu ce g o od sh o r t - term r es u lt s , bu t t h es e o f ten c o m e a t t h e ex p e ns e o f l on g - t e rm v al u e . D u P on t’s p r o xy c on te s t w ith Mr. Pe l tz a f e w y e a r s a go sh ou ld s e r v e as a war n i n g t o t h e b oard an d a ll s h ar e h ol d e rs t o cri t ically ex a m i n e arg u me n ts m a d e b y ma n ag e me n t du ri n g th e h e at o f a p r o xy fig h t.

P & G is righ t f u lly p r ou d o f i t s 1 8 0 - y e a r - old h i s t o r y . T h e r e is n o d o ub t t h e c o m p a n y h as s o m e o f th e g r e a te s t b ra nd s in th e w orl d . H o w e ve r, w e be li e v e th at in r e c e n t y e ars P & G h as co n ti nu e d t o cli n g t oo m u ch t o i t s i n s u lar c u lt u re a n d p ast succ e s s e s w h i l e t e c h n ology is ra p i d ly i n cr e as i n g th e ra t e o f c h a n ge for all bus i ne s s es . G i v e n Mr. Pe l t z’ s qu alificati on s an d h is s i g n i f ica n t o w n e r s h ip i n ter e s t in P& G , w e b e l i e v e h e i s w e l l - s u ited to h e lp P& G n a v iga t e t h es e c h a n g e s an d d ri v e l on g - term v a l u e crea t ion for all s h a r e h ol d e r s .

For t h es e r e aso n s , we i n t en d to v o te t o e l e c t N e l son P e l tz t o P roc t e r & G a mb l e ’ s bo a rd .

Sincer e l y ,

Step h e n Yack t m an

Chief I n v e s t m e n t O ff i c e r

A bou t Yac k t m an As s et M a n a g e m e n t

Y ac k tman A s s e t Ma n age m e n t is a n i n v e s t m e n t a d v i s ory fi r m l o ca t e d in A u s ti n , T e x a s , t h at e m p lo y s a d i s cipli n e d i n v e s t m e n t a pp r o ach foc u se d o n a c h i ev i n g s tr on g r i s k a d j u s ted r e t u r n s o v e r a f u ll m arket c y cl e . Y ac k t m an is led b y Chief I n v e s t m e n t O ff i c e r S t e ph e n Yack t m an a nd , a s o f J un e 30, 201 7 , ma n a g e s m ore th an $15 b illion in a s s e t s .

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C on ta c t

Al e x H i n s on o r N a t alie Br and t

Perry Stre e t Co m m un icati on s

214 - 9 65 - 9955

a h i n s o n @perr y s t.c o m nb ra nd t@ p e rr y s t.com

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In addition, from time to time, Trian Fund Management, L.P. may distribute the following communication, or send or use substantially similar communications, relating to The Procter & Gamble Company:

Read why Yacktman, a top P&G shareholder, is supporting Nelson Peltz. http://bit.ly/2h89F62