Trian Nominates Peltz & Ex-Disney Exec to Media Giant’s Board

Trian Fund Management Nominates CEO Nelson Peltz and Former Disney CFO Jay Rasulo to Disney’s Board

Trian Fund Management, an activist-investor firm, has announced its nomination of CEO Nelson Peltz and former Walt Disney CFO Jay Rasulo to the media giant’s board. This move comes as Trian engages in a contentious proxy fight with Disney, expressing its dissatisfaction with the company’s current direction.

In a press release, Trian stated, “Unfortunately, the Board and CEO appear to have no conviction that things will get better.” The firm believes that its nominees will bring fresh perspectives and help drive positive change within the organization.

Initially, Trian had planned to nominate three or four board members. However, after Rasulo accepted the invitation to be nominated, Trian decided that Peltz and Rasulo would be a stronger option. This decision was made based on their extensive experience and expertise in the industry.

Disney has not yet responded to CNBC’s request for comment regarding these nominations. The media giant is facing pressure from Trian, which has reignited its proxy battle with Disney. Trian is seeking two board seats for Peltz and another media executive, citing “significant value destruction and missteps” overseen by the current board.

While Disney shares have seen an increase of over 8% this year, they have underperformed compared to the gains of the S&P 500. Nevertheless, the stock saw a rise of more than 1% following the announcement of Trian’s nominations.

This proxy fight comes at a time when Disney CEO Bob Iger is working to navigate the company through a period of restructuring and cost-cutting. The media giant has faced several disappointments in recent years, prompting Iger to re-strategize and focus on making the streaming business profitable.

It is worth noting that Disney has attributed the proxy fight, in part, to a personal grudge held by Trian’s ally and former Marvel boss Ike Perlmutter. Trian oversees shares owned by Perlmutter, who has been critical of Bob Iger’s leadership.

In response to Trian’s discontent, Disney recently appointed Morgan Stanley CEO James Gorman and former Sky TV boss Jeremy Darroch to its board. This move was seen as an attempt to appease Trian and address its concerns.

In conclusion, Trian Fund Management’s nomination of Nelson Peltz and Jay Rasulo to Disney’s board adds further fuel to the ongoing proxy fight between the activist-investor firm and the media giant. The outcome of this battle will have significant implications for the future direction of Disney and its efforts to regain its former success in the industry.