Why Nelson Peltz’s Proxy Battle With Disney Is Affecting Bob Iger’s Tenure
Disney’s shareholders will have a lot to review when they meet on April 3 to decide whether to retain the current board as it is, or replace some of its members like some activist investors want.
At present, Disney’s stock has started bouncing back from its multi-year lows. But as the company moved into its earnings on Wednesday, there were questions regarding how successful Nelson Peltz of hedge fund Trian Management would be in his bid to shake up the board.
However, if the proxy battle continues to a vote, the shareholder meeting will decide the board’s fate.
Trian Fund Management Launches Definitive Proxy Statement In Aim To Shake Up Disney’s Board
Disney’s Bob Iger is battling uncertain waters, according to Wall Street watchers, as Nelson Peltz and Trian Fund Management close in.
Last week, Trian Fund Management, which beneficially owns $3 billion of common stock, revealed in their definitive proxy statement their desire to nominate Peltz and former Disney CFO Jay Rasulo to the media giant’s board.
Rasulo is the second former Disney exec to publicly throw in their lot with Nelson Peltz since he embarked on the mission to shake up Disney’s board.
Former Marvel executive Ike Perlmutter has entrusted his stake in the company to Peltz, making up the bulk of Trian’s 30 million-plus shares in the entertainment giant.
A year ago, Peltz ended a previous proxy battle against Disey following the company’s move to cut various initiatives. However, last fall, as Disney’s stock plunged, he revived the fight.
In their statement, Trian argued that the current board has allowed the global company to lose tens of billions in shareholder value, on top of producing disappointing studio content.
“It is unfortunate that a company as iconic as Disney and with so many challenges and opportunities has refused to seriously engage with us, its largest active shareowner, about board representation,” Peltz said in his initial proxy statement last month.
He insisted that the current board does not possess the “ownership mentality” to address some of the company’s biggest issues. These issues, of course, include plans for a CEO successor, the path to streaming profitability, and a revamp of its box office.
According to Bob Iger, his focus as the company’s CEO is to achieve the above mentioned and more, and for him to do that as seamlessly as possible, he has plainly made it clear Nelson Peltz should not be on the board.
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