DuPont beat the activist in May. Its CEO was out by October.
DuPont reelected all 12 nominees against Trian on May 13, 2015. On October 5, it announced CEO Ellen Kullman would retire and cut guidance. Winning the vote isn't winning the argument.
Transcript
On May 13, 2015, DuPont's board counted the ballots and found it had beaten one of the most feared activist investors on Wall Street.
Nelson Peltz's Trian, holding about 2.7% of DuPont, wanted four seats on its 12-member board, after 18 months of back-and-forth over breaking the company up. DuPont's chief executive, Ellen Kullman, fought, and all 12 of DuPont's nominees were reelected.
Then DuPont's earnings kept deteriorating. On October 5, 2015, DuPont announced Kullman would retire, effective October 16, and cut its full-year operating earnings guidance in the same release.
Stepping in as interim chief was board member Edward Breen, whose résumé included overseeing the breakup of Tyco International. Observers were split on whether Kullman's exit was voluntary or forced.
An activist's case does not disappear when it loses at the ballot. If the numbers behind the complaint keep slipping, the argument comes back. One case cannot show Trian was right. It does show the vote did not settle it.
The records behind this video
Every figure in the video comes from this Decision Record, each with its sources.
Run this decision
The Founder Control Strategy Pack. “What does holding control cost you, and what must it be worth?” The framework, a model, a deck and the sourced cases, for running the same call on your own business. See the pack, $499 →
