- Nelson Peltz failed to secure the votes to claim two seats on the Disney board
- It marks a victory for Bob Iger, who has spent about $40 million on his campaign
Disney CEO Bob Iger has successfully convinced shareholders to vote for his favorite board, ending one of the most expensive boardroom battles in history.
It’s a major triumph for Disney veteran Iger, who has been trying for months to prevent a hostile takeover orchestrated by prolific activist investor Nelson Peltz.
All 12 of Disney’s favorite nominees were elected to the board by a “substantial margin,” it was revealed Wednesday afternoon at the company’s annual shareholder meeting.
Peltz, whose firm Trian Partners asked shareholders for two seats: one for him and one for Disney’s former CEO Jay Rasulo.
The billionaire activist investor has argued that Disney has “lost its way,” pointing to the entertainment giant’s recent lack of box office success and failed succession in 2020.
Bob Iger’s victory in the proxy fight will boost his standing in the coming months and help him implement a second succession plan
Bob Iger successfully convinced shareholders to vote for his favorite board at Disney’s annual shareholder meeting on Wednesday
Shortly after the meeting began, Peltz was invited to address shareholders and took credit for a recent increase in the value of Walt Disney Company stock.
He supported a number of leadership decisions in recent months, including plans for an expanded ESPN streaming service.
“But Trian is still worried,” he said. ‘The long-term track record still remains disappointing.’
“We want Disney to get back to great content and delight consumers,” he added.
Iger’s victory in the proxy battle will boost his standing in the coming months and help him implement a second succession plan after his exit from the company fell through in 2020.
But while Trian’s inability to win the seats is a blow to Peltz, the investor has taken credit for the recent rise in Disney’s stock price.
“We hope this campaign has had a positive impact on Disney,” he said.
At the shareholder meeting, he pointed out that as of Wednesday, Disney was the best-performing stock in the Dow Jones Industrial Average this year.
Trian’s failure to win the seats is a blow to Peltz, but he claimed this year’s gains on Disney’s share price
Peltz nominated himself and former Disney CFO Jay Rasulo (right) to the entertainment giant’s board of directors, calling Iger “underperforming”
During his campaign, Peltz attacked the company for producing “woke” films that underperformed at the box office.
He has long been an advocate of taking politics out of America’s boardrooms and focusing on delivering returns for shareholders.
Activist investors like Peltz often believe they can unlock a company’s value by advocating for changes in leadership or strategy.
In open letters to Disney investors, Peltz has been critical of the direction of the company under Iger’s leadership.
In particular, he has criticized Iger’s failed attempt to appoint Bob Chapek as his successor in 2020.
After 15 years as CEO, Iger chose Chapek to take over the company, but that did not last long. In November 2022, he was ousted by the board and Iger was reappointed as CEO.
Peltz has also attacked current Disney leadership for poor box office results in recent years and generally poor stock price performance.