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Procter & Gamble would be better off with Nelson Peltz, says analyst

Key Points
  • "An outside perspective can't hurt," Jonathan Feeney told CNBC Power Lunch.
  • Procter & Gamble CEO David Taylor told CNBC the vote was only motivated by the desire to grow the company.
P&G and Peltz proxy fight was about moving to change: Jonathan Feeney

Procter & Gamble would be better off with activist Nelson Peltz on its board, analyst Jonathan Feeney told CNBC on Tuesday.

Earlier in the day, P&G said initial figures showed Peltz failed in his bid to get a seat on the board. However, Peltz called the vote "as close to a dead heat" as possible.

"An outside perspective can't hurt," Feeney said in an interview with "Power Lunch."

"With all of this change, it just can't hurt to have someone from outside taking a look at some of these issues as one of many voices recommending the best course of action."

Nelson Peltz
David A. Grogan | CNBC

Procter & Gamble — the company that sells, among others, Tide and Pantene products — is being pushed to be more creative as consumers increasingly prefer more niche brands, the analyst at Consumer Edge Research said.

But P&G CEO David Taylor told CNBC the vote was only motivated by the desire to grow the company.

"It's concern for the future of this company," Taylor said. "The board of directors for Procter & Gamble is extraordinarily committed to not only the short- and mid- but also the long-term success of the company."

Peltz said board members are frightened of what he will bring to the company.

"I threatened the hallowed halls of that boardroom," Peltz told CNBC after the shareholder meeting. "The fact is the board needs refreshment. The board needs to really look honestly and openly, and say, 'What's wrong with this picture?'"

Peltz said he's still waiting for the vote's final results and will fight for a seat regardless. Peltz's company, Trian Partners, has a $3.5 billion stake in Procter & Gamble, which has a market value of $230 billion.

Shares of P&G dropped after the news and were down 0.89 percent in afternoon trading.