Disney Reveals Reasons They’re Against These Two Activist Investors
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Disney is boldly not endorsing the nominations of Nelson Peltz and James Rasulo put forth by Trian Fund Management, led by Peltz and backed by former Disney executive and shareholder Ike Perlmutter.
In the same way, the company resisted the nominations of Craig Hatkoff, Jessica Schell and Leah Solivan put forth for election as directors by another activist fund, Blackwells.
Already, some of these activist investors have bad blood with Disney’s CEO Bob Iger, but that’s not the only reason the global entertainment company is resisting to have them onboard.
Disney – Releases Statement Ahead Of Shareholder Meeting And Voting
In a short time, Disney’s shareholders will convene to discuss the future of the company and to decide investors to add to their board. Ahead of this annual meeting, Disney filed a preliminary proxy statement.
“In deciding not to recommend Mr. Peltz, the directors considered a number of factors, including that in a two year quest for a seat on the Disney Board, Mr. Peltz had not actually presented a single strategic idea for Disney,” the company said, going on to point out that Peltz “had no experience in a business that is primarily driven by creative talent and focused on delivering uniquely memorable customer experiences.”
It also warned that Perlmutter, who owns “the lion’s share of the equity claimed by the Trian Group” has a complex relationship with Bob Iger and that this could impact Peltz’s agenda as a director. The company also rejected Rasulo as a candidate, saying, “After leaving Disney eight years earlier, Mr. Rasulo had no further executive role at any public company.”
It said “the media business, the impact of technology and the competitive universe had radically changed during that eight year period rendering his perspective on Disney stale and not relevant to the challenges of today” and that “an outdated perspective on the business would be damaging to the ongoing strategic transformation underway.”
The company went on to cite the executive’s time with iHeartMedia and how his time there didn’t yield much successful fruits.
Disney drove their point home by pointing out that his friendship with Ike Perlmutter is another risky factor.
After explaining the fact that “he was passed over” as CEO in 2015 despite Perlmutter’s support, Disney noted it “would likely inhibit Mr. Rasulo’s ability to work constructively with Mr. Iger and other executives at the Company with whom Mr. Perlmutter had clashed.”
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