Disney’s Iger secures victory in board battle with Peltz

Source: Disney

Disney and its chief executive Bob Iger have fended off the unwelcome attempt by activist investor Nelson Peltz to secure board seats for himself and former Disney CFO Jay Rasulo.

Disney said that it appeared that its full slate of 12 directors had been elected “by a substantial margin” over the nominees of Peltz’s Trian Partners and another investor, Blackwells, at the company’s annual shareholder meeting – this year held virtually.

“We are immensely grateful to our shareholders for their investment in Disney and their belief in its future, particularly during this period of great change in the broader entertainment industry. We are fortunate to have a highly qualified Board of Directors who possess a profound commitment to the enduring strength of this company and an enormous amount of experience and expertise, including succession planning. I’m thankful for Bob and his exceptional management team, as well as Disney’s employees and Cast Members around the world, for continuing to deliver for consumers and shareholders throughout this distracting proxy battle,” said Mark Parker, Disney’s chairman.

The result, giving Disney’s board victory by a wider margin than some had predicted, represented a personal triumph for Iger, who had fought long and hard against what he described as the ‘distraction’ of Peltz’s bid to gain a board seat.

“I want to thank our shareholders for their trust and confidence in our Board and management. With the distracting proxy contest now behind us, we’re eager to focus 100% of our attention on our most important priorities: growth and value creation for our shareholders and creative excellence for our consumers,” said Iger.

In a video message, Iger told shareholders that Disney’s strategy was working and that the company stood on a “far more solid foundation” than at the last shareholder meeting a year ago.

He said his priorities would be to reinvigorate Disney’s film studios, achieve sustained profitability in streaming, position ESPN for the future as the pre-eminent digital sports platform and “turbocharge” growth in the company’s ‘experiences’ businesses.

Regarding Disney’s streaming strategy, one of the key points of contention with Peltz, Iger highlighted the company’s plans to extend streaming into sports, including plans for ESPN and the mooted sports streaming JV with Fox and Warner Bros. Discovery.

Conceding defeat, Trian Partners said: “While we are disappointed with the outcome of this proxy contest, Trian greatly appreciates all of the support and dialogue we have had with Disney stakeholders. We are proud of the impact we have had in refocusing this Company on value creation and good governance. Since we re-engaged with the Company in late 2023, Disney has announced a host of new operating initiatives and capital improvement plans. The Board has been refreshed with two new directors. Over the last six months, Disney’s stock is up approximately 50% and is the Dow Jones Industrial Average’s best performer year-to-date. We thank Trian’s investors for the confidence they have placed in our efforts. And, we wish the best for all of the Company’s stakeholders, including Disney’s Board and management team. We will be watching the Company’s performance and be focusing on its continued success.”