Institutional Shareholder Services (ISS), a proxy advisory firm, has recommended that Walt Disney shareholders support activist investor Nelson Peltz in his proxy battle against CEO Bob Iger. Peltz, along with his firm Trian Fund Management, has asked investors to nominate him and former Disney Chief Financial Officer Jay Rasulo to the board at the annual general meeting on April 3. Peltz aims to revamp Disney’s traditional TV channels, which he believes have been underperforming and negatively impacting shareholder value.
ISS believes that Peltz, as a significant shareholder, could bring value to the board and enhance the succession process. The advisory firm, however, advises against supporting Rasulo due to concerns about potential friction on the board. While ISS criticized Disney’s board for failing to find a new CEO to succeed Iger in the past, the company defended its board’s diversity of skills and experience.
The endorsement from ISS is significant in this proxy battle, as it can influence the voting decisions of many institutional shareholders. Glass Lewis, another proxy advisory firm, has already endorsed Disney’s slate of board nominees, and ISS was expected to follow suit. The support of these advisory firms is crucial for activists like Peltz, as institutional shareholders often rely on their recommendations when casting their votes.
Disney has also garnered high-profile endorsements from figures such as the heirs of Walt and Roy Disney, JPMorgan Chase CEO Jamie Dimon, and filmmaker George Lucas. These endorsements add credibility to Disney’s current board and management team.
Overall, the proxy battle between Nelson Peltz and Bob Iger at Disney has gained attention from both investors and industry experts. The recommendations from ISS and Glass Lewis will heavily influence the voting decisions of institutional shareholders, ultimately shaping the outcome of this battle. As the annual general meeting approaches on April 3, all eyes will be on Disney’s shareholders as they make their choices for the future direction of the company.
