Brief Summary Of The Disney Board Proxy War
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Although the Walt Disney Company stock is up over 30% over the past year the company will face a major battle next week as a battle for control over the company’s board reaches a conclusion next week. Ahead of that conclusion, two major proxy advisory firms have endorsed billionaire outsider Nelson Peltz to be on the company’s board. This vote could have major implications for the direction of the company in the future.
Over the past few weeks, Peltz has gained steam in his attempt to gain a spot on the Disney Board. Peltz is the founder of Trian Fund Management. In the past few weeks, two advisory firms Egan-Jones and Institutional Shareholder Services Inc. recommended that shareholders vote to put Peltz on the Disney Board. The board fight has grown contentious as members fight for control of the board.
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In a statement on their Restore the Magic Website the Trian group said “Disney has lost its way over the past decade. Shareholders have suffered greatly, losing tens of billions in value. We believe the root cause of Disney’s underperformance is a Board that lacks focus, alignment, and accountability.” Currently, it is estimated that the Trian group holds more than 3.5 billion in Disney common stock.
This campaign for votes on the board has come as a potential headache for Bob Iger who is serving his second stint as Disney’s Chief Executive. Since coming back to the company in late 2022 Iger has reorganized the management structure, slashed costs, and hard to address trends that have been developing at Disney. The company has also been in a legal dispute with the State of Florida and its special development district for its parks.
With the vote set for Disney’s board next week, it is important to note that another proxy advisory firm, Glass Lewis, recommended that shareholders vote for the slate of directors that Disney is proposing which does not include Peltz.
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Source(s): Los Angeles Times
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