NEW YORK, Sept 6 (Reuters) - Activist investor Trian Partners on Wednesday released its long-awaited plan to jolt shares of Procter & Gamble Co, detailing changes intended to streamline and rejuvenate the maker of Crest toothpaste, Tide laundry detergent and Pampers diapers.
The release of the 94-page proposal comes as the two sides are locked in a battle over efforts by Trian co-founder Nelson Peltz to join the 12-member board of the $232 billion consumer products company.
P&G has resisted, saying Peltz is a bad fit for the board and has an outdated view on how the Cincinnati, Ohio-based company operates.
Shareholders will vote on Oct. 10 on whether to add Peltz to the board in the only U.S. proxy fight to challenge a company as large as P&G.
"Trian believes P&G should be organized into three largely autonomous business units under a lean holding company," the hedge fund said in its so-called white paper. The company is currently organized in four global business units.
Trian, currently P&G's fifth-largest shareholder, also said the company's management compensation plan is tied to three-year goals that are set too low.
The fund's $3.5 billion P&G investment became public earlier this year, but its strategy on how to boost the company's shares had until now remained behind closed doors.
Other proposed changes include Peltz offering to lead a board study on how P&G can improve innovation, having "failed to create a new meaningful brand in nearly 20 years" according to Trian.
Peltz would also encourage the board to groom more outside leadership talent and to have P&G focus its acquisition strategy on buying and developing smaller, more local brands, Trian said.
Trian has touted Peltz's experience on boards of other consumer companies including Mondelez International Inc , Sysco Corp and Triangle Industries Inc, a packaging company where Peltz was chairman and chief executive from 1983 to 1988.
(Reporting by Michael Flaherty; Editing by Meredith Mazzilli)