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Credit: Inside The MagicBillionaire investor Nelson Peltz, attempting to gain a seat on the Walt Disney Company Board of Directors, just gained immense grounds on the possibility of this taking place on April 3 thanks to a new powerful ally.
Nelson Peltz Receives Monumental Endorsement Ahead of Walt Disney Company Board Proxy Vote
In a significant setback for Walt Disney (DIS.N), activist investor Nelson Peltz received a notable endorsement on Thursday in his ongoing battle against the entertainment behemoth. Proxy advisory firm Institutional Shareholder Services (ISS) recommended that shareholders elect Peltz to the board, which could potentially reshape the company’s future trajectory.
ISS, whose recommendations hold considerable sway over investors’ decisions, highlighted Peltz’s role as a major Disney shareholder, emphasizing his potential to ensure effective governance amidst critical discussions surrounding CEO succession and strategic direction at the iconic home of Mickey Mouse. This endorsement comes as Disney CEO Bob Iger rallies support from prominent figures, including Laurene Powell Jobs, founder and president of Emerson Collective, and Star Wars creator George Lucas.
According to reports, ISS views Peltz as a valuable addition to the board, particularly in facilitating a smooth CEO succession process and reassuring investors about the board’s proactive engagement. Peltz’s investment firm, Trian Fund Management, is contending for two board seats, one for Peltz himself and the other for former Disney financial chief Jay Rasulo. Another activist firm, Blackwells Capital, is advocating for three board seats.
The battle for control over Disney, a company valued at $213 billion, has emerged as one of the year’s most contentious and closely monitored boardroom clashes. It pits a prominent activist investor, known for his collaborative approach with target companies, against a seasoned media industry CEO who returned to the helm two years ago following the board’s dismissal of Iger’s chosen successor.
Peltz and Blackwells have criticized Disney’s handling of succession planning post-Iger, alleging a loss of creative momentum and failure to leverage new technologies effectively. Despite Disney’s dismissal of their candidates’ qualifications, ISS’s recommendation underscores the gravity of the situation, prompting shareholders to consider their options carefully ahead of the April 3 vote.
As the showdown intensifies, prominent figures from both camps have 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.
ISS recommended that shareholders abstain from voting for Rasulo, all three Blackwells candidates, and current director Maria Elena Lagomasino. ISS expressed reservations about Rasulo potentially causing friction on the board, while Lagomasino was singled out for her perceived responsibility in failing to identify a suitable successor to Iger.
While Disney has made operational improvements and added new directors since Iger’s return, ISS contends that additional external oversight is warranted to safeguard the company’s future stability. With his extensive experience serving on public company boards, Peltz is viewed by ISS as the ideal candidate to ensure Disney navigates future challenges successfully.
As the annual meeting approaches, the battle for board control is expected to escalate further, with both sides leveraging social media and rallying support from prominent figures to sway voter sentiment. In a letter to the Disney board, former skeptics-turned-supporters of Peltz emphasized the importance of collaboration for the benefit of all shareholders, underscoring the high stakes involved in this fiercely contested corporate showdown.