By David Benoit
A second proxy adviser has delivered a vote of confidence in
Nelson Peltz in his campaign to get on the board of DuPont Co.
Glass Lewis & Co. late Wednesday said shareholders should
elect the chief executive of activist investor Trian Fund
Management LP to DuPont's board in May, citing the chemical
company's earnings disappointments in recent years and its slowing
revenue growth.
"We believe Trian has identified legitimate concerns at DuPont,
primarily related to operational execution and management
accountability, " Glass Lewis wrote. "We believe Trian has
presented a compelling argument that Mr. Peltz is capable of
working constructively with the incumbent nominees during DuPont's
ongoing transformation process in order to drive greater returns
for shareholders."
One reason Glass Lewis said Mr. Peltz would add to the board was
it felt he would be a significant holder of the stock, helping
offset some investors' concerns that DuPont Chairman and Chief
Executive Ellen Kullman recently has cut her position.
Glass Lewis did also applaud DuPont management for creating
strong shareholder returns and for the steps it has taken to
transform the business.
Neither DuPont nor Trian immediately responded to requests for
comment late Wednesday.
Write to David Benoit at david.benoit@wsj.com
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