See, Disney and drama are rarely a good partnership, but the recent drama in Disney management is definitely more interesting than whatever they are producing. Disney is having their share of elections, and it is definitely an exciting piece of drama.
Let’s introduce you to the main two characters.
Disney CEO Bob Iger and Nelson Peltz are having a clash in the election, as the latter one is trailing with the candidates he is backing.
Disney and CEO Bob Iger are ahead in shareholder votes for all 12 board candidates, with activist investor Nelson Peltz behind. Over half of the votes have been cast before Disney’s April 3 annual meeting.
Key institutional investors, BlackRock (4.2% of shares) and T. Rowe Price (0.5%), are backing Disney’s director slate, including Iger, according to anonymous sources cited by the Wall Street Journal.
According to the WSJ, Disney’s 12-member board slate reportedly holds a lead over Peltz, with about 20% of shares voted. Peltz led in replacing incumbent Maria Elena Lagomasino, while Jay Rasulo trailed.
T. Rowe Price confirmed over 99% of their shares voted for Disney’s recommended nominees, expressing confidence in management’s plan. Disney, Trian, and BlackRock representatives declined to comment on the report.
Trian, led by Peltz, holds 1.8% of Disney’s shares, mainly owned by Ike Perlmutter, known for his animosity towards Disney’s CEO, Iger. Peltz, with a track record in activist investing, criticizes Disney’s underperformance and CEO succession planning. ISS supports Peltz’s bid for the board, citing Disney’s failure in succession planning.
Disney counters, questioning Peltz’s lack of media experience and labeling the proxy fight as disruptive. Iger garners support from Glass Lewis, George Lucas, Michael Eisner, and others, despite Trian’s claim of supporting him as CEO but withholding votes for his board reelection.