P&G Stock: Top 5 Proxy Fight Concerns for Employees and RetireesSubmitted by Stone House Investment Management, LLC on October 6th, 2017
As the largest proxy fight in history draws to a close, stock holders, employees, and retirees are expressing concerns about its outcome.
Working with many Procter & Gamble employees and retirees from around the country, our Stone House team has received a lot of questions and feedback from our clients about their concerns about the proxy battle outcome. Change can be good, but it can also lead to disruption.
As an employee of P&G, you undoubtedly own a large amount of P&G stock as it makes up the majority of your profit sharing plan. Unfortunately, this makes the current proxy battle even more complicated for you. On one hand, you have to consider your job security and satisfaction; on the other hand, you need the value of your P&G stock to increase as much as possible before you retire. Both sides have made statements addressing these issues. We are not going to rehash those arguments or take sides on this issue, as the outcome of the vote may affect employees differently. For example, a new manager is likely more concerned with job security than P&G stock price, because he or she has not yet accumulated much stock. A tech with 30 years of service and who is currently considering retirement, however, likely won’t be as concerned with job security and will be mostly concerned about the P&G stock price.
Ahead of the shareholder vote on Tuesday at the company's annual meeting, our team compiled the top 5 concerns faced by P&G employees and retirees.
Our team is concerned about your concerns amidst the P&G proxy battle. Want to make your voice heard? Please take our P&G Proxy Vote Survey. Please note that your survey response will be kept strictly confidential and we will report on the aggregate results when the survey is complete.
So let’s get to the top concerns. Based on our conversations, we have seen the following themes surface as to what people are most worried about:
1. Job Security
Change can be good. It can also lead to downsizing and reallocation of resources. Employees, especially those that are not near retirement age, have expressed concerns about the security of their jobs, if there ever is to be a major shake up with the board.
2. P&G Stock Price
The entire reason for the proxy battle is the stock price. Both sides present a case for why their leadership is better for the future price of P&G Stock. Employees and retirees have expressed concerns about the future of P&G stock and whether they should consider diversifying away from P&G stock ahead of the decision.
3. Healthcare and Other Benefits
Part of any cost cutting measures could mean cuts to employee benefits. This is a concern for all employees. Health benefits and profit sharing contributions are the most likely targets of cost cutting, as they are the most costly of the benefits provided.
4. Workplace Culture
Depending on where you work within the company, you may have a different perspective on the culture of P&G, and whether or not it needs a refresh. Changes to the board could mean a difference in how the company thinks about employee relations and incentives.
5. Breaking Up the Company
Breaking out the brands of P&G would no doubt lead to disruption. It could be positive for the stock price, but it could also lead to unwelcome changes for employees, including downsizing, relocation, and changes in compensation and benefits packages.
Concerned about the P&G proxy fight? Want to make your voice heard?
Take our survey and see how you match up with the rest of your peers. We’ll send you the results of the survey after we have tallied the results.
Don’t worry, your answers will be kept strictly confidential.
MEET OUR P&G TEAM:
Kirk A. Lunger (pictured left) joined the team at Stone House Investment Management, LLC as an Investment Advisor Representative in 2014. He began his financial career as an accountant at Northeast Concepts, Inc. in Dallas, PA. He has always been passionate about the inner-workings of finance, business and investing, since earning a BS in Accounting from Misericordia University. As a financial advisor he loves being able to communicate those passions to his clients by guiding them through unfamiliar terrain. Kirk concentrates heavily on helping families navigate the complex retirement process; ensuring the best strategies are established to protect a client’s assets and income up to and throughout retirement. In his spare time, he loves spending his out-of-office hours on the golf course, in the outdoors, but most of all spending time with his family. It is of utmost importance to him that he offers his clients well-informed and knowledgeable assistance in reaching their financial goals and objectives.
John M. Burke (pictured middle) joined Stone House Investment Management, LLC as an Investment Advisor Representative in 2008, and currently holds the positions of Portfolio Manager, Lead Advisor, and Partner. Having previously worked for Procter & Gamble for fourteen years, he held various roles in Supply Chain, Operations & Initiative Management. John’s work in investments and financial planning started while at the University of Notre Dame where he earned a MBA degree. Since then, he has managed his own portfolios using mixes of quantitative, fundamental and technical strategies. In 2002, John also started up a successful small business.
Todd W. Shelton (pictured right) became a Lead Advisor at Stone House Investment Management, LLC in 2016. Having worked for Procter & Gamble for 10 years, Todd grew up in a P&G family with his father serving over 28 yrs as a P&G technician. He earned a degree in Mechanical Engineering from Missouri School of Science and Technology, which fostered his desire to work with others and create solutions for long term goals, even in challenging environments. Todd has a passion for coaching and helping others achieve their financial objectives. He uses his experience in the manufacturing industry to deliver a straight-forward, practical approach to the complex retirement process. When not in the office, Todd enjoys hunting, fishing, and camping with his family. Todd also enjoys being actively involved in his church.
Neither Stone House nor its representatives are affiliated with or endorsed by Procter & Gamble.
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