Disney CEO Bob Iger appears to have the upper hand in efforts to block a proxy fight from Trian Partners, led by activist investor Nelson Peltz.
Reuters reported that more than half of all shares were counted ahead of Wednesday’s shareholder meeting, with Disney beating out Tryon thanks to support from asset management giants Vanguard, BlackRock and T. Rowe.
Mr. Peltz, who has doubts about Mr. Iger’s leadership and business strategy, wants to take away two seats on the company’s board, one for himself and the other for former Disney chief financial officer Jay Laszlo. The aims.
Vanguard, Disney’s largest shareholder with an 8.2% stake, and T. announced that they had voted for Mr. Froman’s re-election. Reuters reported.
Earlier Tuesday, Norges Bank Investment Management, which owns 1.2% of Disney’s stock, announced that it had voted to re-elect 11 of Disney’s 12 board members. NBIM, which manages the Norwegian government pension fund, did not vote for the candidate proposed by Tryan.
Disney scored another win on Monday when it appeared to secure the backing of another powerful investor, BlackRock, Disney’s second-largest shareholder, according to Reuters.
BlackRock, Vanguard, Disney and Trian declined to comment.
Backing from large institutional investors could give Disney an early advantage in the proxy fight, but people involved in reviewing shareholder votes cautioned that the outcome could still change. did.
Those who have already voted will have the opportunity to change their decisions before Wednesday’s 1 p.m. meeting.
Top Disney executives, activist investors Tryon and Blackwells Capital, and an army of call center employees made phone calls, making last-minute appeals to voters to elect board candidates.
Disney wants shareholders to elect all 12 of its current board members as two hedge funds, Tryon and Blackwells, vie for their seats.
The board battle comes at a pivotal time for Disney, as the company seeks to reinvigorate its creative franchises, make its streaming business profitable and find a partner to help build ESPN’s digital future. are doing.
Iger called the activists’ campaign a “distraction.”
Disney stock has risen 34% in 2024, but is still down nearly 40% from its all-time high closing price in March 2021. Shares rose 1% on Tuesday to close at $122.82 per share.
Mr. Peltz and other activists point to Disney’s lack of a clear succession plan for Mr. Iger, 73, when he eventually retires as planned in 2026.
Hollywood insiders told the Post that Iger’s decision comes amid industry-wide skepticism about whether Disney has a candidate ready to take over in two years. The search for a successor is said to be difficult.
Disney executive Dana Walden, considered the frontrunner to succeed Mr. Iger, is a known insider, but some question whether she has the talent to run a company as large as Disney. There are some people.
With the outlook for his successor uncertain, some are predicting that Iger will continue in the role and extend his contract once again.
Additional reporting by Alexandra Steigrad and Post Wires
