Proxy Fight Begins At E I Du Pont De Nemours And Co (DD)


Wikimedia Commons: Photo Credit Snoopvw

E I Du Pont De Nemours And Co (NYSE:DD)’s Board of Directors has not questioned management’s accountability for repeated failures to deliver on estimated revenues and earnings targets, according to Trian Partners. Investment funds managed by Trian own about 24.4 million DuPont shares, worth approximately $1.8 billion.

Being one of the largest DuPont shareholders, Trian Fund Management, L.P. recently nominated four high-profile candidates for election to the DuPont Board at the 2015 Annual Meeting. Trian nominated these directors with extensive strategic, operating and financial experience to ensure new perspectives and robust oversight from the DuPont Board.

Rationale for Nominations

Trian is concerned about E I Du Pont De Nemours And Co (NYSE:DD)’s struggling earnings, organic revenue growth and margins performance. Despite management focus on integrated science, DuPont has missed its publicly stated guidance for at least past three years.

Trian outlined lack of management accountability as one of the primary reasons for DuPont’s persistent underperformance. Other reasons pointed in a letter to DuPont’s Board include bureaucracy, overwhelming complexity, excessive holding company costs and a persistent discount to its share price.

Trian believes the expertise and a history of generating long-term shareholder value of its director nominees would help initiate strategic actions at DuPont. The new slate of Directors may also play vital role in furthering Trian’s proposal to separate DuPont into GrowthCo and CyclicalCo/CashCo, in addition to DuPont Board’s recent decision into Performance Chemicals.

Director Nominees

Nelson Peltz, CEO and a Founding Partner of Trian, is one of the four director nominees and brings nearly four decades of experience in investing, building and turning around companies.

John H. Myers, former President and CEO of GE Asset Management; Robert J. Zatta, Acting CEO and long-time CFO of Rockwood Holdings, Inc.; and Arthur B. Winkleblack, former Executive Vice President and CFO of H.J. Heinz Company (NYSE:HNZ) are among the director nominees.

Lisa Ray

Lisa Ray primarily covers Retail and Healthcare. Lisa Ray has completed her MBA (Finance) and an avid market tracker. She is a stock market analyst who closely tracks US markets along with other global markets like India. She has been expressing her views for years about markets and also advises various clients.

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