Proxy Battle Between Peltz, Disney: An Outline

(RTTNews) - An ongoing proxy battle between The Walt Disney Co. (DIS) and Trian Partners, led by Nelson Peltz, has raised concerns about the board's composition and the company's future.

Trian, a significant shareholder in Disney, has decided not to vote for CEO Bob Iger's reelection to the board. With the annual shareholder meeting scheduled for April 3, Trian has released a statement outlining its goals of changing the board's composition to improve Disney's financial performance.

In January, Peltz launched a campaign to secure board seats for himself and former Disney CFO Jay Rasulo. Trian's proposals, which are detailed in a 133-page document, include ensuring a smooth CEO succession, linking executive compensation to shareholder value, and achieving profit margins similar to Netflix by 2027. Trian is urging shareholders to vote for Peltz and Rasulo while refraining from voting for Disney's Maria Elena Lagomasino and Michael Froman, current board members.

Disney, on the other hand, has nominated 12 directors, including Iger. Disney has expressed concerns that Peltz and Rasulo do not bring strategic value and could be detrimental to the board.

The company is apprehensive that Peltz, along with his silent partner Perlmutter, could hurt Disney and its strategic objectives. In recent months, Disney has been active in various filings, countering opposition from investment firm Blackwells Capital, which opposes Peltz but has its own board nominees.

Disney has criticized Trian's proxy battle as disruptive and harmful, suggesting that Peltz's motives might be more about personal vanity than a genuine belief in Disney. The media company has portrayed Trian's campaign as driven by a personal agenda held by former Marvel Entertainment chairman Ike Perlmutter against Iger. Trian currently holds approximately $3.5 billion in Disney stock, with Perlmutter possessing 79% of that stake. Disney parted ways with Perlmutter last year.

The forthcoming Disney board meeting is set for April 3, and Trian has the option to alter its position before then.