Disney CEO Bob Iger labels Peltz proxy battle as a “distraction”
Disney CEO Bob Iger has labeled the recent proxy battle with activist investor Nelson Peltz as a “distraction,” stating that the company can now focus on turning a streaming profit and planning for his successor. In an interview with CNBC’s “Squawk on the Street,” Iger emphasized that selecting his replacement is the board’s top priority. Despite the battle with Peltz, Disney’s strategy for succession, business investments, and content plans remain unchanged.
Iger acknowledged the challenges faced by Bob Chapek, who took over as CEO in 2020 during a time of shutdowns and disruptions in film and TV production, theme park closures, and the discontinuation of live sporting events. Chapek held the position for two years before Iger returned to it. Iger expressed confidence in the company’s preparedness for a successful transition.
Peltz, in an interview with CNBC, clarified that he did not have a personal vendetta against Iger but rather wanted to ensure that Disney had a clear leadership plan in place. He stated that the issue he had with Iger was the succession plan, which he believed was the responsibility of the board.
Iger also dismissed Peltz’s claim that his activism was responsible for recent stock gains at Disney. According to Iger, the market is reacting to the company’s performance rather than the activist’s actions. Disney’s shares have risen by 32% year-to-date.
During the investor meeting, shareholders sided with Disney, delivering a stinging defeat to Peltz and his Trian Fund Management. Peltz lost the board seat race to Maria Elena Lagomasino by a 2-to-1 margin, while former Disney CFO Jay Rasulo lost by a 5-to-1 margin. Retail voters overwhelmingly supported Disney, contributing to Iger receiving 94% of the overall vote. A second activist group, Blackwells, also failed to win board seats.
Iger has been working to improve Disney’s performance since returning as CEO in late 2022. He reversed a new corporate structure implemented by Chapek and reduced the number of film and television projects. Iger also announced a plan to invest $60 billion in Disney’s theme park, cruise, and experience business over the next decade.
Up next for Disney is a new bundled sports service with Warner Bros. Discovery and Fox, as well as a standalone ESPN service. Iger stated that the flagship ESPN service will have significantly more content than the ESPN component of the joint venture. He did not disclose further details about the joint venture, including its potential name or price point.
Overall, with the proxy battle behind them, Disney can now focus on its streaming initiatives, succession planning, and future business investments. Iger’s leadership and strategic decisions have received strong support from shareholders, paving the way for a smooth transition to his successor in the coming years.
