Satisfied with Legg Mason turnaround, activist investor Nelson Peltz leaves board

Stock price of money manager more than doubled since 2012 with new CEO and cost cuts as inflows return

Dec 2, 2014 @ 7:03 am

By Bloomberg News

Activist investor Nelson Peltz is stepping down from the board of Legg Mason Inc. (LM) after the company changed its senior management and board, cut costs and returned more than $2 billion of capital to shareholders.

Mr. Peltz, a founding partner of Trian Fund Management LP, plans to spend more time on other commitments, according to a statement Monday from the Baltimore-based company. Trian still owns 11.3% of Legg Mason shares.

“Nelson has been a great partner for me and an important contributor to our turnaround efforts,” Legg Mason Chief Executive Officer Joseph Sullivan said in the statement. “We greatly appreciate Nelson's candor, insights and experience and are very pleased with the meaningful progress we have made to reshape the company since he joined the Board five years ago. We wish Nelson all the best and look forward to continued dialogue with Trian as Legg Mason's largest shareholder.”

Mr. Peltz, who is known for pushing companies to improve their share price, gained a board seat in 2009 after Trian took a stake, then spurred it to cut costs and boost profit. In October 2012, Mark R. Fetting stepped down as CEO amid pressure from Mr. Peltz and Mr. Sullivan took over. Since then, Legg Mason shares have more than doubled.

In October, Legg Mason attracted the most new money in more than seven years, after Bill Gross's departure from Pacific Investment Management Co. prompted investors to reallocate their funds. Its assets under management rose to $719.5 billion as of Oct. 31, from $707.8 billion at the end of September.

Under mr. Sullivan, Legg Mason “increased shareholder value, strengthened its balance sheet, is seeing positive net flows and is positioned for future success,” Mr. Peltz said in the statement. “Trian is very pleased with Legg Mason's growth and development and believes that Legg Mason's strong and dedicated board is keenly focused on the creation of long-term shareholder value.”

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

Diversity & Inclusion Awards: 2018 nominations are open

Editor Fred Gabriel and special projects editor Liz Skinner discuss the nomination process for InvestmentNews' inaugural Diversity & Inclusion awards.

Latest news & opinion

Broker protocol: Indecision over recruiting agreement is rampant

Ruckus over recruiting agreement has even wirehouse lifers wondering if it's time

Cetera reportedly exploring $1.5 billion sale

The company confirmed it's talking to investment bankers to 'explore how to best optimize [its] capital structure at lower costs.'

SEC Chairman Jay Clayton outlines goals for a new fiduciary standard

Rule should provide clarity on role of adviser, enhanced investor protection and regulatory coordination.

Advisers bemoan LPL's technology platform change

Those in a private LinkedIn chat room were sounding off about fears the independent broker-dealer will require a move to ClientWorks before it is fully ready.

Speculation mounts on whether others will follow UBS' latest move to prevent brokers from leaving

UBS brokers must sign a 12-month non-solicit agreement if they want their 2017 bonuses.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print