Credit: Inside The MagicDisney has made things clear regarding its nominations for its Board of directors, which sends a powerful message to the billionaire investor Nelson Peltz, who’s trying to overtake the company’s finances.
Disney Releases Full List of Board of Directors Nominations, Clapping Back at Nelson Peltz
Yesterday, Disney released its official list of who it would like to join its Board of Directors, and the list was robust. The list includes the likes of current CEO Bon Iger, former NIKE, Inc. chairman Mark G. Parker, and Mary T. Barra, the current CEO of General Motors. The official press release from the Walt Disney Company made its rounds through social media, including the part where Disney outright stands firm on not allowing nominations from billionaire investor Nelson Peltz.
Per the official press release from Disney:
The Board does not endorse the nominations of Nelson Peltz and James Rasulo put forth by Trian Fund Management, L.P. and its affiliates, led by Nelson Peltz and supported by former Disney executive Isaac Perlmutter (collectively, the “Trian Group”). The Board recommends that shareholders do not vote for the Trian Group nominees, and that they reject a related proposal from the Trian Group to amend the Company Bylaws.
The statement suggests a disagreement between the Board and Trian Fund Management, L.P., along with its affiliates led by Nelson Peltz and supported by former Disney executive Isaac Perlmutter (referred to as the “Trian Group”). The Board is not endorsing the nominations of Nelson Peltz and James Rasulo, put forward by the Trian Group.
Additionally, the Board advises shareholders not to vote for the Trian Group nominees and to reject a proposal from the Trian Group aimed at amending the Company Bylaws. This indicates a significant difference in opinions and strategies between the company’s BoarBoard and the Trian Group regarding potential changes or additions to the leadership and governance of the company.
Who Is This Billionaire Investor?
Nelson Peltz is an American businessman and investor. Born June 24, 1942, he co-founded Trian Fund Management, L.P., a multi-billion dollar asset management firm. Peltz is known for his involvement in activist investing, where he acquires significant stakes in companies and works to influence their management and strategic decisions. Disney CEO Bob Iger has been open about not wanting the nominations for the Disney board from Peltz. Activist investor Nelson Peltz has clarified his intentions to cut costs, improve Disney’s streaming business, and improve succession planning.
Nelson Peltz has been involved in various high-profile corporate battles and gained recognition for his influence in business. His investment strategies often focus on restructuring and improving the performance of the companies in which he invests.
In December 2023, Peltz nominated himself and another candidate to the Board, including Disney’s CEO, in a proxy battle. Peltz believes the company’s stock is not doing well and that leadership succession planning has been mishandled.
Disney rejected Peltz’s bid for a board seat and his nomination of former finance chief Jay Rasulo. Disney said the investor lacks new ideas and that its former executive has been away from the media business for too long.
This powerful message to Peltz proves that Disney is standing firm as they did with Ron DeSantis in 2022, showing how unphased and unmoveable the House of Mouse is to the corporate and political worlds.