Orlando, Florida – In a letter released on Wednesday, the Walt Disney Co. made it clear that it is standing by Bob Iger as CEO and does not see the need for board representatives from activist firms such as Nelson Peltz’s Trian Fund Management. With the annual shareholder meeting on April 3 looming, a proxy battle is underway, with Peltz criticizing the company’s recent decisions and Iger’s leadership.
According to the letter, Disney believes that ambitious growth plans require leadership with a deep understanding of the company’s strengths and assets, emphasizing that the current board possesses the talent and expertise relevant to the company’s strategic objectives. The letter also highlighted the company’s strategic plan, which is already delivering results.
This latest development comes after activist investor Nelson Peltz, whose firm Trian Fund Management is in conflict with CEO Bob Iger, denounced the company’s recent announcements as “spaghetti against the wall” and expressed confidence in winning the proxy fight. Trian is seeking to have Peltz and former Disney CFO Jay Rasulo elected to the company’s board of directors, a move that Disney has formally rejected.
In response, the Disney letter underscored the company’s intense focus on building for the future, in addition to highlighting a string of recent announcements, including news about the casting of the Fantastic Four, a release date for the Marvel property, and other activities. By doing so, Disney aims to boost shareholder confidence and support amid ongoing tensions and a looming proxy battle.
The letter further addressed critical moves made by Disney, such as the $1.5 billion investment in Epic Games, which Trian views as lacking a clear product roadmap or expected return targets. Trian also criticized Disney’s sports streaming venture with Fox Corp. and Warner Bros. Discovery, citing potential confusion among consumers and content partners.
In the face of mounting pressure, Disney emphasized its recent slew of announcements and initiatives, from upcoming streaming service launch dates to exclusive content streaming rights. This has resulted in a boost in Disney stock, reflecting shareholders’ positive response to the company’s recent activities.
Amidst growing tensions, Steve Easterbrook, a lifetime Disney investor and former CEO of McDonald’s, has backed the Trian effort, further intensifying the proxy battle. This ongoing clash raises significant concerns about Disney’s corporate strategy and long-term performance, sparking a debate about the company’s future direction and leadership.