Amid a proxy battle from Trian, CNBC commentator Jim Cramer is calling for Disney to add Nelson Peltz to its board.
What's Happening:
- CNBC’s Jim Cramer is calling on Disney to give activist investor Nelson Peltz a seat on its board.
- Trian Fund Management filed a preliminary proxy statement on Thursday to appoint Peltz to Disney’s board.
- However, at this time, Disney has recommended that shareholders vote against the proposal and support all of their board nominees.
- Peltz recently laid out his issues with the entertainment giant on CNBC’s Squawk on the Street, hours after launching a website — RestoreTheMagic.com — detailing his concerns.
- He highlighted many issues with Disney, including "its $71 billion acquisition of Fox in 2019 that he said ruined the company’s balance sheet, the deterioration of the company’s shareholder value in recent years, and what he views as poor corporate governance."
What They're Saying:
- Jim Cramer on why Disney should appoint Peltz: “It’s the board, the stewards, who haven’t done a good job. Not the shareholders, and not Peltz. Now someone like Peltz, who’s been tremendously successful, wants to join them and they act like that’s a problem.”
- Cramer noting the cost of a proxy battle: “Lots of money, your money if you’re a shareholder like my charitable trust, will be spent to stop Nelson Peltz from joining the board … even though he’s not the guy who was involved with the disastrous Fox acquisition or the disastrous choice to make Bob Chapek the CEO.”