1The Walt Disney Company released a statement defending its executive board on Thursday after billionaire activist Nelson Peltz announced intent to self-nominate himself to the board via his company, Trian Partners.
This is Peltz’s second attempt at joining the board, losing a proxy battle in February. Once again, the billionaire is joined by one of The Walt Disney Company’s largest individual shareholders, former Marvel Entertainment CEO Ike Perlmutter. The pair also nominated former Disney CFO Jay Rasulo.
“Disney is one of the most iconic companies in the world with unrivaled scale, unparalleled customer loyalty, irreplaceable intellectual property (‘IP’), and an enviable commercial flywheel,” Peltz said in a press release. “However, Disney has woefully underperformed its peers and its potential.”
He blamed Disney CEO Bob Iger, who returned to the company unexpectedly in 2022 to replace his successor, Bob Chapek. The statement cited plummeting stock prices, claiming Disney shareholders were “once over $200 billion wealthier than they are now.” If Peltz succeeds, he is likely to oust Iger as CEO.
“The Disney I know and love has lost its way,” he said. Peltz and Rasulo hope to “resolve the malaise and crisis of confidence among Disney shareholders.”
Shortly after the pair announced their intent to nominate themselves for the board in 2024, The Walt Disney Company pushed back against their claims. In a statement, Disney praised its “experienced, diverse, and highly qualified” Board of Directors: Chairman Mark G. Parker, CEO Bob Iger, Mary T. Barra, Safra A. Catz, Amy L. Chang, Francis A. deSouza, Carolyn N. Everson, Michael B.G. Froman, Maria Elena Lagomasino, Calvin R. McDonald, and Derica W. Rice.
They added that the current board “is focused on the long-term performance of the Company, strategic growth initiatives including the ongoing transformation of its businesses, the succession planning process, and increasing shareholder value.”
This shakeup comes just weeks after Disney appointed two new directors: James P. Gorman and Sir Jeremy Darroch. Their new roles will take effect in 2024.
The Walt Disney Company will file preliminary materials for its 2024 Annual Meeting of Shareholders with the Securities and Exchange Commission (“SEC”), including the board’s chosen nominees. Disney shareholders don’t need to take action at this time.
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