JPMorgan Chase CEO Jamie Dimon has voiced support for CEO Bob Iger and has become involved in the proxy battle between Disney and Trian Fund Management.
Daimon told CNBC Iger said Wednesday that he is a “first-class executive and a great leader” who “knows the media and entertainment industry and has a track record of success to prove it.”
“This is a complex industry full of creative talent, and we need Bob’s unique expertise and engagement skills,” the bank’s CEO continued, according to the newspaper. “Unnecessarily appointing people to the board can harm the company. Why would a shareholder take such a risk, especially given the great progress the company has made since Bob returned? I don’t know if I should bear it.”
The latest proxy battle between the entertainment giant and Trian Fund Management’s Nelson Peltz began late last year. Tryon and related companies own approximately $3.5 billion worth of Disney stock.
The company argued that Disney was experiencing “chronic underperformance” financially and that the board of directors was to blame. A recently released white paper argued that boards are falling short in areas such as strategic oversight, capital allocation, culture, succession planning and executive compensation.
In addition to pushing for change at the company, Trian nominated Peltz and former Disney CFO James Laszlo for board seats in mid-December to help the entertainment giant “restore its magic.” He has been seeking a seat in the duo ever since.
In response to Dimon’s endorsement of Iger, Tryon said: in a press release “While Disney appears to be seeking public support from its investment bankers and commercial partners, this campaign is not a statement from highly compensated bankers or service providers, but rather how shareholders should ensure proper governance and oversight by the board of directors.” We should focus on how we can ensure this.”
FOX Business also reached out to Disney regarding Dimon, but did not receive a response by press time.
Disney has previously maintained that Trian’s “strategic transformation is working” and that its board and management team is “delivering on its promise to create superior and sustainable shareholder value.” has faced much criticism. The company also questioned the quality of Trian’s nominees compared to its own director nominees, which it said were “best qualified” to oversee the company.
Peltz and Tryon previously engaged in a proxy battle with Disney and Iger. ended in February About last year. Its termination coincided with Disney revealing plans to cut costs and restructure the company through layoffs and other measures.
Disney said in a filing this week that it is “on track” to achieve that goal. Increase annual savings goal to $7.5 billion.
The final shareholder meeting in the current proxy contest is scheduled to be held in early April.
Disney director nominees in this vote include Mary Barra, Safra Catz, Amy Cheung, Jeremy Carlock, Carolyn Everson, Michael Froman, James Gorman, Maria Lagomasino, Calvin MacDonald, Mark Includes Park, Delica Rice, and Eiger.
