Iger Triumphs in Disney Proxy Battle Against Peltz, Promises to Stay on Course

📝 SUMMARY: Walt Disney Co. ($DIS) shareholders solidified their support for CEO Bob Iger by rejecting the board seat bid of dissident investor Nelson Peltz, marking a clear endorsement of Iger's leadership and strategic direction. This decision came at Disney's annual meeting, where investors also turned down Peltz's ally Jay Rasulo and nominees from another dissident group, Blackwells Capital LLC. Iger, who returned as CEO in November 2022, has been actively addressing investor concerns, including resolving a dispute with Florida, adding new directors for succession planning, and vowing for profitability in Disney’s streaming sector.

Peltz’s Trian Fund Management LP, with a substantial Disney stake, has criticized the company for underwhelming shareholder returns and governance issues. Despite these criticisms, Peltz’s proposals, including his board nomination, received minimal shareholder support, with Iger being reelected with 94% of the vote. Trian expressed pride in their impact on Disney's focus on value creation and governance, while Blackwells aimed to prevent Peltz’s board inclusion.

Following the vote, Disney’s shares experienced a minor setback, dropping 2.9%, despite a significant year-to-date rally. Iger's tenure has been marked by efforts to streamline operations, cutting costs by $7.5 billion and eliminating 8,000 jobs, alongside revitalizing Disney’s film business and expanding its digital and streaming offerings. Plans include a sports streaming service and significant investments in parks, resorts, and the video game sector, highlighting a strategic pivot towards growth and digital integration.

🔍 SOURCE: https://www.bloomberg.com/news/articles/2024-04-03/disney-s-iger-wins-proxy-vote-over-peltz-with-board-s-election?srnd=homepage-americas