Disney shareholders reelected the media conglomerate’s full board, handing a stinging defeat to activist Nelson Peltz and former Marvel CEO Ike Perlmutter. Peltz-led Trian Partners sought to make changes at the iconic company, including the removal of two directors due to share underperformance, failed succession planning, and misdirected investments. However, shareholders overwhelmingly supported Disney in the proxy fight, with CEO Bob Iger receiving 94% of the overall vote.
Despite significant efforts by activists like Peltz and Blackwells to gain board seats, they ultimately fell short in convincing enough shareholders that they had a viable plan for Disney. Peltz, who controls a $3.98 billion stake in Disney along with Perlmutter, saw the company’s shares rise by nearly 50% during the campaign. While Peltz and his firm claimed credit for the share rebound, they were not able to secure a seat on the board.
As Disney moves forward from the proxy fight, it still faces numerous challenges, including a decline in ESPN subscribers, losses in the streaming business, and the search for a successor to CEO Bob Iger. The company’s botched succession process, which led to the ousting of Bob Chapek just two years into his tenure, was a key point raised by activists against Disney. Despite these challenges, Disney remains focused on growth, value creation for shareholders, and creative excellence for consumers.
Proxy advisory firms Glass Lewis and ISS both raised concerns about Disney’s succession planning, with Glass Lewis recognizing Iger’s return and the addition of new board members as steps towards a more credible succession program. Shareholders rallied around Disney after the company made significant announcements during its earnings call, including exclusive streaming rights to Taylor Swift’s concert film and a strategic investment in Epic Games.
With the proxy fight behind them, Disney is shifting its focus back to its core priorities of growth, value creation, and creative excellence. The company is committed to addressing its challenges head-on, including the evolving landscape of streaming services and the search for a new CEO. Despite the setbacks faced during the proxy battle, Disney remains determined to continue its legacy of innovation and entertainment for years to come.
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