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Activist Investor Nelson Peltz Targets Disney’s Boardroom
November 30, 2023
Nelson Peltz, a prominent activist investor, and his firm are reportedly angling to secure more than two places on Disney’s distinguished board of directors, and this move potentially foreshadows a proxy fight at Disney.
Trian Fund Management, co-founded by Peltz, announced its intentions to advocate for change directly to Disney’s shareholders, signaling a tumultuous period ahead. Disney, however, appears to perceive this as less a strategic business move and more a personal vendetta driven by one of Peltz’s partners, Ike Perlmutter, the ex-boss of Marvel.
According to Trian, Disney offered to plan a meeting with the firm but denied Trian’s bid for Peltz and other members to join the board. How many seats Trian is aiming for on the board remains undisclosed.
The situation quickly evolved, with Disney announcing the addition of two new board members: James Gorman, CEO of Morgan Stanley, and former Sky TV head honcho, Jeremy Darroch. This move, perceived by many as a tactical play to ward off the potential threat posed by Peltz, runs in parallel to the news that Francis deSouza, Ex-CEO of Illumina, will not be standing for reelection on the board.
While the S&P 500 flourishes, Disney’s stocks have only seen a meager increase of 6% this year. Trian Fund Management holds a significant slice of Disney stock, boasting ownership of approximately $3 billion. The firm also oversees shares owned by ex-executive Perlmutter, whose criticism of Disney Chief, Bob Iger, led to his termination.
Disney retaliated by asserting that Perlmutter bears a grudge against Iger, frequently criticizing Disney for overspending. Peltz, on the other hand, had previously attempted to secure a seat on Disney’s board after Trian invested around $800 million in Disney. Following a comprehensive company restructuring by Iger, including layoffs and cost cuts, Peltz postponed the proxy fight.
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