Credit: Inside The MagicA major Disney shareholder, Nelson Peltz Trian Fund Management, who is also sending out accusations that the Walt Disney Company isn’t doing its job correctly, is under controversy following shocking new allegations.
Nelson Peltz’ Trian Fund Management Withheld Its Votes Towards Disney CEO Bob Iger
According to sources closely monitoring the situation, Nelson Peltz’s Trian Fund Management chose to withhold its votes from Walt Disney CEO Bob Iger during the recent proxy battle against the entertainment giant.
This decision contrasts with Trian’s proxy recommendations and appears inconsistent with Peltz’s public statements expressing a desire to collaborate with management if elected to the Disney board.
In response, Disney has escalated its criticism of Trian and Peltz, releasing an investor presentation titled “Correcting Trian’s Fact With Fiction,” featuring a picture of Pinocchio with an elongating nose. Peltz has refuted accusations of attempting to remove Iger from his position, stating to the Financial Times, “We don’t fire CEOs.”
When approached for comment, a Trian spokesperson directed CNBC to a press release reiterating its proxy recommendations and affirming support for Iger as both a board candidate and CEO.
However, the decision to withhold votes from Iger raises concerns about the potential discord in the boardroom should Peltz be elected next month. Disney has nominated a slate of 12 directors, including Iger.
At the same time, Trian officially recommends shareholders vote for Peltz and former Disney CFO Jay Rasulo, withholding votes for current board members Maria Elena Lagomasino and Michael Froman.
Holding a relatively minor stake in Disney at about 1.5% of outstanding shares, Trian aligns with former Marvel Entertainment CEO Ike Perlmutter in this proxy battle. As the Disney board meeting approaches April 3, Trian may alter its stance before the vote.
Activist investor Nelson Peltz received a significant boost in his ongoing battle against Walt Disney (DIS.N) as proxy advisory firm Institutional Shareholder Services (ISS) endorsed his candidacy for the board last Thursday. This notable recommendation suggests a potential reshaping of the entertainment behemoth’s future trajectory, marking a setback for Disney.
As the showdown intensified, prominent figures from both camps mobilized influential supporters to bolster their respective cases. Star Wars creator George Lucas and JP Morgan banker Jamie Dimon have thrown their weight behind Iger, while several business executives have publicly backed Peltz.
What are your thoughts on this ongoing Disney Shareholder Nelson Peltz Trian Group information about withholding votes?