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Activist shareholder Nelson Peltz urges shareholders to vote against entertainment giant Nelson Peltz adding another candidate to its board pushed by him and his hedge fund They're hitting back at Disney for what they asked for.
Peltz, CEO of Trian Fund Management, said in a letter accompanying his proxy statement filed with the Securities and Exchange Commission (SEC) on Thursday that Disney's current board of directors has not affected its earnings. He accused her of “self-harm''. Mr. Peltz and a hedge fund that owns $3 billion in Disney common stock have been pushing for a seat on Disney's board of directors, believing they can improve the company's performance.
“It is unfortunate that a company as iconic as Disney, with so many challenges and opportunities, has refused to seriously engage with us, its largest active shareholder, regarding board representation.” Peltz wrote.
“Instead of creating a board that includes directors with a 'spirit of ownership' who can bring new perspectives to the company's challenges, Disney resists change and relies primarily on traditional directors (and their hand-picked successors) They are asking shareholders to support a board of directors made up of executives who fail to properly plan for CEO succession, misalign management incentives, and bring streaming businesses into the black. “We have repeatedly failed to oversee and drive strategies that enable studios to produce great content,” he continued.
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Disney is trying to fend off activist shareholders led by Nelson Peltz who are seeking a seat on the entertainment giant's board of directors. (Patrick T. Fallon/AFP via Getty Images/Getty Images)
“Do Disney shareholders really believe that the current board can heal its self-inflicted wounds? We respectfully believe the answer is 'no' and that the composition of the board is We will seek shareholder support to make meaningful changes. Now is the time for a 'recovery' of “Disney Magic,'' he concluded.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| DIS | walt disney company | 92.20 | +1.84 | +2.04% |
Tryon's letter noted that Disney's total shareholder return has been “significantly lower than that of its industry peers and the broader market for all relevant periods over the past 10 years, and throughout each non-executive director's tenure.”
The document states that in terms of total shareholder return (TSR) through October 6, 2023, Disney's return has lagged the S&P 500 by 34% year-over-year and 168% over the past 10 years. There is. Compared to Disney's peers in the entertainment space, Disney's TSR lagged 48% last year and 401% over the 10 years prior to that date.
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Mr. Peltz and his hedge fund have criticized Disney management for failing to adequately plan for CEO succession. Current Disney CEO Bob Iger returned to the job following Bob Chapek's appointment. ((Photo credit: Charley Gallay / Getty Images for Disney) / Getty Images)
Disney on Tuesday opposed pressure from activist shareholders to name Peltz and Jay Laszlo, Disney's former chief financial officer and chairman of Disney Parks and Resorts Worldwide, as candidates. He expressed his intention to do so.
Disney claimed it was in the midst of an “unprecedented transformation” that would change its leadership team and streamline its operations to improve cost efficiency.
The company said Peltz “hasn't really presented a single strategic idea” to Disney and lacks relevant media and technology experience, while Laszlo was handed over Disney in 2015. He said he has not held another executive position at a listed company since leaving the company. The role of the chief operating officer.
Nelson Peltz, founder and CEO of Trian Fund Management, is pushing for a reorganization of Disney's board of directors. (Marco Bello/Bloomberg via Getty Images/Getty Images)
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Mr. Tryon and Mr. Peltz countered in their letter that Mr. Peltz and Mr. Laszlo have “excellent consumer brand expertise, financial acumen, and a shareholder-first mindset.”
They also wrote that Disney's poor performance was “a result of the board's failure to adequately fulfill its primary responsibility as stewards of stockholder capital.”
FOX Business' Breck Dumas and Reuters contributed to this report.
