Trian Group’s Nelson Peltz Seeks Election to Disney Board, Criticizes Bob Iger’s Leadership
Nelson Peltz, the prominent activist investor and member of the Trian Group, has made a formal request to Disney shareholders to elect himself and former Disney executive Jay Rasulo to the company’s board of directors. Peltz, who is allied with Ike Perlmutter, holds a substantial amount of Disney stock worth around $3 billion.
In its proxy statement released today, Trian reiterated its complaints about Bob Iger’s leadership, stating that Disney has “significantly underperformed its peers and its potential.” The group believes that Peltz and Rasulo would bring the necessary expertise and qualifications to the board.
Trian also urged shareholders to withhold votes for three nominees put forward by another activist investor, Blackwells. According to Trian, Craig Hatkoff, Jessicasl Schell, and Leah Solivan lack the relevant experience and qualifications compared to the Trian nominees.
Disney, on the other hand, believes that all five nominees, including Trian’s and Blackwells’, are unqualified. The company stated that Peltz has not presented any strategic ideas for Disney and that Rasulo’s perspective may be outdated since he has been out of the business for a significant period. Additionally, Disney argued that Rasulo may struggle to work constructively with Iger after being passed over for the CEO position in 2015.
Peltz appeared on CNBC this morning to discuss his concerns about Disney’s board. He highlighted the fact that the entire board, including Bob Iger, owns less than $15 million worth of stock. Peltz questioned their commitment to the company, considering the fees and benefits they receive as directors or officers. He also criticized Iger for taking a billion dollars out of the company since he joined, while earnings were down and the stock price suffered.
Peltz’s criticisms of Iger’s leadership are not unfounded. Last year, Iger received a staggering $31.5 million in compensation, despite the company’s underperformance and missed targets. This raises questions about accountability and the board’s responsibility to ensure improved performance.
The battle for control of Disney’s board is intensifying as both Trian and Blackwells seek to influence the company’s direction. Trian believes that Disney needs fresh perspectives and strategies to unlock its full potential, while Blackwells appears to be satisfied with the current turnaround efforts.
As the annual meeting approaches, Disney shareholders will have to carefully consider the qualifications and visions of the nominees. The outcome of this election could have a significant impact on the future of Disney and its ability to regain its position as a leader in the entertainment industry.
