Peltz launches Disney rematch with proxy battle
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The news: Nelson Peltz’ activist fund, Trian Partners, has launched a second proxy battle with Disney after the entertainment giant turned down Trian’s request for board representation.
The numbers: Trian Fund Management owns USD3 billion ($4.53 billion) of stock in Disney, representing approximately 1.8% of its share capital.
The context: Trian’s recent efforts to gain board representation were rejected by Disney on Wednesday, which installed Morgan Stanley CEO James Gorman, and former group CEO of Sky, Sir Jeremy Darroch, to its board to get ahead of a Trian (or Peltz) appointment. In a statement, Trian said that the decision prompted the fund to “take its case for change directly to shareholders.”
The move sets up a proxy fight likely to play out at Disney’s AGM in early 2024.
Peltz and Disney CEO Bob Iger have fought a bitter battle over the past 12 months over management decisions, exacerbated by pressure from investors to improve performance after significant losses across its streaming and film divisions. The FT also reports Peltz is unhappy with the board’s recent decision to extend Iger’s tenure until the end of 2026.
What they said: “Since we gave Disney the opportunity to prove it could ‘right the ship’ last February, up to our re-engagement weeks ago, shareholders lost ~$70 billion of value. Disney's share price has underperformed proxy peers and the broader market over every relevant period during the last decade and over the tenure of each incumbent director. Investor confidence is low, key strategic questions loom, and even Disney's CEO is acknowledging that the Company's challenges are greater than previously believed...Trian intends to take our case for change directly to shareholders,” said Trian in a statement.
The source: Trian media release
