Nelson Peltz: the activist investor with a ‘piratical charm’
The activist investor hot on Unilever’s heels
In late September last year Nelson Peltz met the chief executive of Unilever, Alan Jope, for breakfast in a private room at Claridge’s in London. Peltz had organised the meeting to lobby against the recent announcement that Unilever’s Ben & Jerry’s brand would stop selling ice cream in the occupied Palestinian territories — an apparent protest against Israeli settlements.
Peltz told Jope his opinion: no company has any place making these kinds of political statements. This remains the only conversation the two men have had — so far.
Just over a week ago it emerged that Trian Partners, the $8.5bn activist fund that Peltz co-founded in 2005, had quietly built up a stake in Unilever, the consumer goods company best known for products such as Dove soap and Hellmann’s mayonnaise.
Until then the only Peltz in the UK headlines this year was Nicola Peltz — one of Nelson’s 10 children — who is marrying Brooklyn Beckham this spring. But news of Trian’s stake changed all that, sending Unilever’s share price soaring more than 7 per cent, leaving the company rushing out their plans to axe 1,500 management roles, and propelling the 79-year-old billionaire into the spotlight.
In this profile of Peltz, James Fontanella-Khan and I speak to those who have worked with and against Peltz to get a sign of what might be in store for Unilever. Roger Carr, who was chair of Cadbury when the activist successfully campaigned to split its drinks business from confectionery, recalls:
“Peltz has a piratical charm and a velvet glove. But don’t mistake the iron fist. He is relentless in pursuit of his own objective, which is value creation.”
Meanwhile Jope may be living many CEOs’ nightmare after being targeted by Peltz. But Brooke Masters, our new US investment editor, argues that activist investors provide an important market function that is needed now more than ever.
And Unilever’s former CEO Paul Polman has waded into the profits versus purpose debate. He argues that critics of ‘woke’ capitalism are wrong. Terry Smith, I hope you’re listening . . .