P&G board proposes declassification - again

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Procter & Gamble's board of directors has unanimously agreed to
propose the declassification of its board structure and annual
election of directors to its shareholder AGM in October, a move
make it more accountable to shareholders.

But shareholders in the Cincinnati-based household and personal care giant have already voted against the declassification last year, when the board first made the proposal.

P&G's board members are currently elected for three-year terms but the elections are staggered, meaning that the posts are not all up for election at the same time.

The proposal to phase out this system over the next three years and elect directors annually for one-year terms will come to pass if it is approved by 50 percent of shares outstanding.

The company said its board said "was guided by shareholder opinion on this important issue of corporate governance".

In January P&G announced its intention to acquire Gillette in a $57 billion deal that sees it expand its presence into the men's grooming category - and which is expected to turn it into a $60 billion global conglomerate. The transaction is expected to complete in the fall.

Best recognized for its shaving and associated personal care products, Gillette currently has a staggered board structure but shareholders will vote on declassification at its AGM next month.

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