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Credit: Inside The MagicBillionaire investor Nelson Peltz, who is eyeing his seat on the Disney Board of Directors, just called out two members currently on the board who he feels should be removed and replaced. One thing is sure: it’s an all-out war.
Nelson Peltz Calls Out Current Disney Board Members
According to a new report from Deadline, Billionaire Nelson Peltz wants two specific Disney board members replaced immediately. With Trian Partners, the Walt Disney Company, Disney CEO Bob Iger, Jay Rasulo, Disney shareholders, Blackwells Capital, and activist investor Nelson Peltz all at war with each other, things are starting to ramp up for the battle for Disney Board of Directors seats.
Nelson Peltz is making a bold move in his quest to shake up Disney’s board. In a bid to revitalize the entertainment giant, Peltz and former Disney executive Jay Rasulo are urging shareholders to back their election to the board. The latest twist in this corporate drama reveals Trian, Peltz’s investment firm, has singled out two current directors, Maria Elena Lagomasino and Michael Froman, as candidates to be ousted.
Trian is urging shareholders to withhold their votes for Lagomasino and Froman, emphasizing that Peltz and Rasulo bring a fresh perspective and the expertise needed to address what Peltz perceives as poor management, resulting in a sluggish stock performance. This spring, the stage is set for a high-stakes showdown at Disney’s upcoming annual meeting. Peltz intensifies his critique of the company through shareholder communications and a dedicated website named “Restore The Magic.” Get ready for a boardroom battle that promises to be as captivating as the stories Disney is known for.
The Stage Is Set
In a recent filing with the SEC, Trian didn’t hold back in its critique of Michael Froman and Maria Elena Lagomasino, the two Disney directors it’s targeting for replacement. Trian pointed out Froman’s lack of experience as a public company director outside of Disney, emphasizing his extensive career in seemingly unrelated fields such as federal trade representation, national security advising, and financial executive roles.
Regarding Lagomasino, Trian questioned the relevance of her background in wealth management to Disney’s diverse businesses. The investment firm also criticized Lagomasino’s oversight as the Chair of Disney’s Compensation Committee, highlighting instances of what they perceive as misaligned compensation practices. Trian specifically pointed to the approval of a controversial compensation package for Mr. Iger and a compensation program for fiscal year 2023 that, in their view, fails to align with Disney’s financial and operational performance.
Trian further scrutinized Lagomasino’s track record on compensation committees at other companies, citing instances of overseeing problematic compensation practices. The filing also aimed at both directors’ roles in Disney’s Governance and Nominating Committee, holding them accountable for alleged poor corporate governance and significant succession issues.
The stage is set for a contentious battle over these issues at the upcoming annual meeting.
Who Is This Billionaire Businessman?
Nelson Peltz is an American billionaire businessman and investor. He is the CEO and a founding partner of Trian Fund Management, an investment management firm. Peltz is also an activist investor with a history of challenging systems in large companies.
Peltz co-founded Trian in 2005 with Peter May and Edward Garden. Trian has $8.5 billion in assets under management and a portfolio that includes stakes in Bank of New York Mellon, DuPont, and Mondelez International. Peltz has also served on the boards of several major consumer goods companies, including Procter & Gamble and Ingersoll-Rand.