Sysco Corporation has added Nelson Peltz, CEO and founding partner of Trian Fund Management LP, and Josh Frank, a partner in Trian, to the company's board of directors, in a move that can help increase the company's value, according to a press release issued by Sysco.
The addition of Peltz and Frank to Sysco's board was effected on Aug. 21. 2015.
Jackie Ward, a non-executive chairman of Sysco's Board of Directors, said in the press release that the "significant experience in the food products industry" of Peltz and Frank brings the company's board an "informed perspective."
"We have engaged in constructive dialogue with Nelson and Josh and look forward to benefiting from their insights and contributions," he said.
Ward added in the press release that the company is "committed to enhancing value for all of Sysco shareholders."
He also said that they are "always welcome" for "constructive inputs" that can help the company increase its long-term value to shareholders.
"We respect Trian's experience and value the perspective they will bring as we continue to focus on supporting the success of our customers, profitably growing our business and improving our return on invested capital," Bill DeLaney, president and CEO of Sysco, added in the press release.
The Wall Street Journal added that Sysco has been under pressure to bolster its profit margins and come up with a new strategy.
This follows the company's failed acquisition of U.S. Foods, Inc.
The Wall Street Journal added that Peltz said last week, after acquiring a 7 percent stake in Sysco, the company hasn't been performing to its potential.
Peltz added that Sysco should be run more efficiently and that the compensation of the company's management should align better with Sysco's performance.
In the press release, Peltz said that they welcome the opportunity to work constructively with the Sysco's board and management.
He added that the company is "undervalued and has tremendous long-term potential."
Sysco said in the press release that the company will be including Peltz and Frank in its slate of nominees for election to the Board at Sysco's 2015 Annual Meeting of Shareholders.
