Billionaire investor Nelson Peltz has a message for America's corporate chiefs; when he calls they do not automatically have to fear for their jobs. Peltz's $13 billion Trian Fund Management is widely regarded as one of the world's most influential activist investment firms, holding board seats at companies from Wendys Co to General Electric Co.
Unlike other activists who often unseat CEOs, Peltz, 75, told Reuters Breakingviews on Tuesday that he prefers to work alongside management in making companies like Bank of New York Mellon Corp and Mondelez International Inc, raise sales, cut costs and earn more. And he worried how rivals' tactics are impacting a sector of the investment world that has attracted newcomers who are eager to cash in on the riches industry veterans like Peltz and Carl Icahn have earned over the last decades.
"The word activist has come to mean a fight, it has come to mean short term," Peltz said, adding "We are really not that concerned about the next quarters numbers because we will be around for the next 28 of them." In a wide ranging interview, he called the technical aspects of proxy voting "busted", praised President Donald Trump for getting things done, and worried electronic commerce company Amazon.com Inc holds too much sway over prices for the goods it sells. But mostly he sought distinguish Trian by saying that the firm usually sticks around for seven years and brings an ownership mentality to the board room. Known for writing white papers full of suggestions.
-Reuters, New York
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