Activist Investor Nelson Peltz Makes Case for Joining Disney’s Board

Activist investor Nelson Peltz is stating his case for joining Disney’s board. Peltz’s Trian Fund Management has formally nominated Peltz and former Disney CFO Jay Rasulo to the media giant’s board of directors. They have outlined a list of initiatives and performance targets they would pursue if elected.

Promising a Successful CEO Succession

In a proxy filing, Peltz and Rasulo promised to “finally complete a successful CEO succession,” referring to CEO Bob Iger’s delayed retirement date and his return after the firing of former CEO Bob Chapek.

Aligning Management Pay with Performance

Trian also aims to “align management pay with performance,” criticizing Iger’s $31.6 million pay package last year while Disney stock underperformed the S&P 500.

Achieving Netflix-Like Margins

Trian’s goal is to achieve “Netflix-like margins” of 15% to 20% by 2027, as Peltz believes Netflix is Disney’s biggest competition.

Streamlining and Restructuring

Iger is working to streamline Disney and make its Disney+ streaming platform profitable. Peltz believes the current board oversight is “awful.”

The Future of ESPN

Peltz wants a solidified payback period and business plan for ESPN, which he calls the “crown jewel” of the company.

Restoring Leadership Accountability

Peltz calls for a board-led review of studio creativity to “restore leadership accountability” and reclaim Disney’s leading box office position.

A Clear Vision for Theme Parks

Peltz and Rasulo aim to execute a clear vision for Disney’s theme parks, targeting “high-single digit operating income growth.”

This story is developing. Please check back for updates.