Will Disney Shareholders Elect an Activist Board Member?
Summary from the AllSides News Team
As the 2024 elections draw closer, Disney shareholders are locked in a different kind of campaign — a proxy battle over placing activist investors on the company’s board.
‘Restore the Magic’: Led by Nelson Peltz, a billionaire known for activist campaigns at Heinz and other companies, the hedge fund Trian Partners is seeking to place Peltz and former Disney CFO Jay Rasulo on Disney’s board of directors. The group’s “Restore the Magic” campaign tells shareholders that the entertainment giant has “lost its way” because the board “lacks focus, alignment, and accountability.”
‘Vote Disney’: Led by CEO Bob Iger, Disney’s board is defending itself with a wide-ranging campaign of its own. Its “Vote Disney” website highlights “a 100-year track record of creativity, innovation and growth” and accuses the “disruptive” Peltz of making false claims about his experience.
The Latest: While Peltz said he planned to vote for former President Donald Trump in November, the proxy fight has focused on issues like the profitability of streaming, not on conservative culture war criticisms of Disney. News broke Thursday morning that corporate research firm ISS was backing Peltz. That contrasted with advisory firm Glass Lewis, which backed Iger along with JP MorganChase CEO Jamie Dimon and Star Wars creator George Lucas.
How the Media Covered It: Coverage was mainly found in business outlets rather than mainstream political outlets. Some coverage on the right featured Peltz’s comments about Trump. The New York Times (Lean Left bias) published a favorable piece saying Peltz “just wants some respect.”
Featured Coverage of this Story
From the Center
ISS endorses activist Peltz for Disney board in bitter proxy fightIn a blow to Walt Disney (DIS.N), opens new tab, activist Nelson Peltz received a powerful endorsement in his battle against the entertainment conglomerate on Thursday, when proxy advisory firm Institutional Shareholder Services (ISS) recommended shareholders elect him to the board.
ISS, whose recommendations can sway hundreds of investors' votes, said Peltz, a large Disney shareholder, could ensure the board does its job well as it tackles questions of CEO succession and strategy at the home of Mickey Mouse.
The recommendation comes as Disney CEO Bob Iger continues to rally support...
From the Left
Disney's defensive strategy in the most expensive proxy battle in historyThe Walt Disney Co. and Trian Partners, led by Nelson Peltz, are currently in the midst of the most expensive proxy battle in history.
Why it matters: Disney is pulling every communications lever to fight off Peltz ahead of the April 3 shareholder meeting.
Between the lines: Disney must cast a wider than normal communications net because of the enormous amount of retail investors who own the stock.
Zoom in: To do that, it has launched a grassroots effort by placing targeted social media ads, creating a designated LinkedIn page, calling the everyday shareholder and launching a landing...
From the Right
George Lucas says 'no one knows Disney better' as he backs Bob Iger in proxy fight with PeltzLegendary filmmaker George Lucas is backing Disney and CEO Bob Iger in the company's proxy fight with activist investor Nelson Peltz.
"No one knows Disney better" than CEO Bob Iger, Lucas said in a statement seen by Reuters.
"I remain a significant shareholder because I have full faith and confidence in the power of Disney and Bob’s track record of driving long-term value," he reportedly said. "I have voted all my shares for Disney’s 12 directors and urge other shareholders to do the same."
Lucas has been a Disney shareholder since selling his production...
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