Disney Shareholders to Vote on Nelson Peltz’s Board Position at Upcoming Annual Meeting
Disney shareholders will soon have the opportunity to settle a long-standing proxy battle led by billionaire investor Nelson Peltz. At the company’s annual meeting, shareholders will decide whether the current board should remain intact or if candidates nominated by activist investors, including Peltz, should replace certain directors. The meeting, which will be aired live via webcast, is expected to last about two hours.
Peltz, along with former Disney Chief Financial Officer Jay Rasulo, has been campaigning for two board seats, seeking to replace Maria Elena Lagomasino and Michael Froman. However, it seems that Disney has secured enough votes to maintain the current board.
While Trian Partners may not win the board seats, they can still claim a financial victory. Since the start of their campaign, Disney shares have increased by 48%. Peltz holds a significant stake in Disney, controlling $3.98 billion worth of shares.
Trian has criticized Disney’s board for failing to generate sufficient returns in recent years due to subscription streaming losses and declining traditional TV subscribers. They have also argued that the board has struggled with succession planning, highlighting how CEO Bob Iger has renewed his contract five times and had to return to the position after a failed handoff to Bob Chapek.
Disney, on the other hand, has defended Iger’s leadership and strategic decisions since his return as CEO. The company believes that it should be given the opportunity to recover without distraction. Furthermore, Disney claims that they have a robust succession vetting process in place.
Institutional investors own the majority of Disney’s stock, and some have already expressed their support for the current board. BlackRock, Disney’s second-largest shareholder, plans to back the company. T. Rowe Price, another significant shareholder, is also supporting Disney.
Shareholder advisory firms, Glass Lewis and ISS, have split their recommendations. Glass Lewis supports Disney, stating that Iger’s return and recent board nominations have given the company a chance to address its weaknesses. ISS, however, believes that there have been board oversight failures, particularly in succession planning, and recommends Peltz’s nomination.
While the outcome of the shareholder vote is uncertain, it is clear that this proxy battle has drawn significant attention and support from various stakeholders. The results will not only impact Disney’s board composition but also shed light on the company’s future direction and leadership.
