Hey monkeys,
Clayton Daley, former finance chief at P&G is now sitting on the opposing side of the boardroom to his former protege in a fight regarding the reinvigoration of P&G.
In a challenge of P&G leadership, Mr. Daley was hired this summer to help win a board seat for activist investor Nelson Peltz, who believes the maker of Tide and Pampers isn’t moving fast enough to revive sales and profits. The company said Mr. Peltz would disrupt its progress and has cast Mr. Daley, who retired at the end of 2008, as too long out of touch to be taken seriously.
Moeller, the CFO, has stated Mr. Daley was considering "becoming an enemy of the company".
“The only word I can use that is appropriate is, ‘disappointing.’ There are many other things I could say, but that’s the word I’ll use,” P&G Chief Executive David Taylor said of Mr. Daley’s new allegiance. “To be working against the company, the board, the folks who supported him while he was here.”Mr. Daley’s hard-charging, often blunt, style contrasts with Mr. Moeller’s more democratic approach, say people who know both men. They each rose through the finance ranks at P&G, starting out in the accounting departments of P&G factories and advancing to headquarters.
Personally, I find that P&G is facing the same macro economic challenges as everyone. Consumers don't have the disposable income that they used to have. Daley argues that P&G needs more innovation and "new products", however, it is difficult to justify this in macro conditions that dictate low growth. On the other hand, his argument that P&G is becoming complacent and tied to mediocrity does stem from the fact that P&G's strategy has mostly included the creation of line extensions, a low risk low reward strategy.
I'm curious as to what you monkey think of this? Do you think Mr. Daley's actions are fair?
