According to CNBC, activist investor Nelson Peltz and his firm, Trian Partners, are seeking at least two seats on Disney’s board.
What’s Happening:
- Activist investor Nelson Peltz and his firm, Trian Partners, are seeking more than two seats on Disney’s board.
- This was announced the morning after Disney added Morgan Stanley CEO James Gorman and former Sky TV boss Jeremy Darroch to its board.
- In a Trian statement, it noted, “While James Gorman and Sir Jeremy Darroch represent an improvement from the status quo, the addition of these directors will not, in our view, restore investor confidence or address the root cause behind the significant value destruction and missteps that this Board has overseen.”
- Peltz had been waiting to see what would happen with Disney's earnings report earlier in the month and then decide whether or not to make a move.
- Trian Partners oversees more than $3 billion in Disney shares, which belong to former Disney executive Ike Perlmutter.
- Previously, Peltz sought representation on the board and launched a proxy fight leading up to the company’s 2023 Meeting of Shareholders, but backed off those plans in February.
- Year to date, Disney shares are up about 6%, which is far below the S&P 500’s overall return.
- In response to Peltz’s announcement Disney said in a statement, “Mr. Peltz, in partnership with Isaac Perlmutter, a former Disney executive, intends to take its case to shareholders. Mr. Perlmutter owns 78% of the shares that Mr. Peltz claims beneficial ownership of, or more than 25 million of the 33 million shares. This dynamic is relevant to assessing Mr. Peltz and any other nominees he may put forth as directors, as Mr. Perlmutter was terminated from his employment by Disney earlier this year and has voiced his longstanding personal agenda against Disney’s CEO, Robert A. Iger, which may be different than that of all other shareholders.”