Bob Iger, the CEO of Disney, has emerged victorious in a contentious proxy battle against activist investors for board seats. The outcome of the battle was announced at Disney’s annual shareholders’ meeting, where Iger expressed his gratitude to the shareholders for their trust and confidence in the board and management.
The proxy battle saw activist investors, including Nelson Peltz of Trian management and former Disney CFO Jay Rasulo, vying for board seats. However, Disney successfully defended its board and prevented any changes to its composition. Blackwells Capital, another hedge fund that nominated three board director candidates, also failed in its attempt to gain influence over Disney’s board.
The shareholders voted to elect all 12 nominees recommended by the Disney Board, including notable figures such as Mary T. Barra, Safra A. Catz, and Robert A. Iger himself. This resounding support from the shareholders enables Disney to continue its focus on growth, value creation, and creative excellence.
Reuters had reported before the vote that Disney had already secured enough support to end the high-profile board fight. Despite this, Peltz still made his case during the meeting, emphasizing the need for Disney to create sustainable long-term value and delight consumers with great content. Peltz also acknowledged the changes that Disney had made under the threat of the proxy battle, such as investments in Epic Games and plans to launch an ESPN streaming service.
The activist investors argued that new blood was necessary in the board room due to Disney’s alleged mishandling of CEO succession planning, loss of creative spark, and failure to harness new technology. However, the shareholders ultimately sided with the existing board members, affirming their belief in Disney’s future and the company’s ability to navigate the changing entertainment industry.
Disney chairman Mark Parker expressed gratitude to the shareholders for their investment and belief in Disney’s future. He acknowledged the challenges faced by the broader entertainment industry and emphasized the company’s commitment to delivering exceptional value to its investors.
With the proxy battle now behind them, Disney can shift its full attention to its priorities of growth, value creation, and creative excellence. The company can continue to build upon its successful strategies and innovations while maintaining the trust and confidence of its shareholders.
