Nelson Peltz, the founder and CEO of Trian Fund Management, has chosen not to support Walt Disney CEO Bob Iger in the ongoing proxy battle against the entertainment giant. According to sources, Trian withheld its votes from Iger, a move that goes against its proxy recommendations and contradicts the public statements made by Peltz about wanting to work together with management if elected to the Disney board.
The proxy battle between Trian and Disney has become increasingly acrimonious in recent weeks, with Disney launching attacks on Peltz and his firm. Disney’s investor presentation featured the headline “Correcting Trian’s Fact With Fiction” alongside a picture of Pinocchio with a growing nose. Peltz, however, has denied any intention of firing Iger and has expressed his desire to help him.
While Trian’s spokesperson reiterated its support for Iger as a candidate for the board and as CEO, withholding votes from him raises questions about the potential toxicity of the boardroom environment if Peltz is elected. Disney has nominated a slate of 12 directors, including Iger, while Trian is recommending shareholders vote for Peltz and former Disney CFO Jay Rasulo, and withhold votes for Disney nominees Maria Elena Lagomasino and Michael Froman.
Trian owns a relatively small position in Disney, representing approximately 1.5% of outstanding shares when combined with the ownership position of former Marvel Entertainment Chairman and CEO Ike Perlmutter, who is also siding with Peltz in the proxy battle. The upcoming Disney board meeting on April 3 provides an opportunity for Trian to potentially change its vote.
Overall, the proxy battle between Trian Fund Management and Walt Disney has created uncertainty surrounding the leadership and direction of the entertainment giant. With Trian withholding its votes from CEO Bob Iger, it remains to be seen how this will impact the potential collaboration between Trian and Disney’s management if Peltz is elected to the board. The upcoming board meeting will be a crucial event to watch as it may provide further insights into the future of Disney’s leadership team.
