Disney CEO Bob Iger on Wednesday announced a heated battle with activist investor Nelson Peltz, who had sought a seat on the entertainment giant’s board of directors, claiming the company had underperformed in the streaming TV era. Won the proxy battle.
Instead, investors voted for the re-election of all 12 of Disney’s current directors announced at Disney’s annual shareholder meeting, a number engineered by Trion Management’s billionaire CEO Mr. Peltz. A million-dollar battle has come to an end.
“Now that the distracting proxy fight is over, we want to focus 100% on our most important priorities: growth and value creation for our shareholders and creative excellence for our consumers,” said Iger. “I think so,” he said.
Mr. Iger received 94% of the vote, while Disney director Maria Elena Lagomasino, whom Mr. Tryon competed for, received 63%, the Wall Street Journal reported. Peltz got just 31%.
A representative for Tryon said, “While we are disappointed with the outcome of this proxy fight, Trion deeply appreciates all of the support and dialogue we have had with the Disney community.”
Disney stock has fallen more than 3%, but the stock has risen about 50% in the past six months.
Disney’s board of directors has thwarted the activists’ challenge, but must find a successor before Mr. Iger, 72, retires at the end of 2026. Board members have recently sought to reassure shareholders that they are taking the issue seriously and scrutinizing it.
Analysts said the company also needs to show progress in making its streaming TV division more profitable and launching an app for its flagship sports network ESPN.
“Iger now has a window to execute his recovery plan,” said Dan Coatsworth, an analyst at investment platform AJ Bell. “However, if it fails to produce the desired results within the next 12 months, investors may change allegiance.”
Disney is evaluating four internal candidates for Iger’s job. They include the company’s highly respected head of television Dana Walden, ESPN’s Jimmy Pitaro, theme parks head Josh D’Amaro and film head Alan Bergman. .
Mr. Peltz and Blackwells Capitals had sought five seats between them on Disney’s board. Activists argued that the $225 billion media company had failed to plan its CEO succession, lost its creative spark and failed to properly leverage new technology.
“All we want is for Disney to get back to creating great content, delighting consumers, and creating sustainable long-term value for all of us,” Peltz said in announcing the results. I mentioned it at the previous meeting.
“Regardless of the outcome of today’s vote, Trian will be closely monitoring the company’s performance,” he added.
The battle is a closely watched referendum on Disney’s efforts to reinvigorate its film and TV franchises, make its streaming business more profitable and find a partner to help build a digital future for its sports network ESPN. Ta.
Both sides spent millions of dollars on campaigns to persuade voters and launched public and personal attacks.
Mr. Peltz was seeking board seats for himself and former Disney chief financial officer Jay Laslo. Disney said the pair lacked the necessary skills and that their suggestions for improvement were “nothing new,” noting that Mr. Laszlo was succeeded by Mr. Iger.
At one point, Peltz retorted that Disney was “stupid” to oppose him and claimed he was trying to help Iger.
“It’s clear that shareholders decided they liked what Mr. Iger was doing and wanted to give him more time,” said Bill George, a former CEO and executive at medical device maker Medtronic. Peltz sees it as a hindrance to long-term growth.” Fellow of Harvard Business School.
Tryon was Disney’s fifth largest shareholder with a 1.76% stake as of Dec. 31, according to LSEG data. Hedge funds’ $3 billion bet on Disney was the main reason for the company’s poor performance last year compared to activists.
