Disney has reportedly secured enough shareholder votes to fend off a board challenge from activist investor Nelson Peltz ahead of the company’s annual meeting on Wednesday.
Sources told Reuters that votes tallied Tuesday night showed Disney’s incumbent board directors safely ahead of Peltz’s rival slate, which included himself and former Disney CFO Jay Rasulo.
Peltz, whose firm Trian Fund Management holds a major Disney stake, had harshly criticized CEO Bob Iger’s leadership as “underperforming” in his push to join the board.
However, Disney fought back aggressively, releasing a video that dismissed Peltz’s motivations as driven more by “vanity” than belief in the company. It claimed the billionaire, who is politically conservative, has a “long history of attacking companies to the ultimate detriment of shareholder value.”
The video portrayed Peltz’s bid as being influenced by his ties to “disgruntled former employee” Ike Perlmutter, alleging it stemmed from a personal grudge against Iger.
Disney argued that adding Peltz and his “crony” Rasulo to the board would be “disruptive” and “value-destructive.” It highlighted Peltz’s criticism of diversity moves like all-female and all-Black casts as signs he was out-of-step with the company.
While influential proxy advisor ISS backed Peltz, enough Disney shareholders appear to have sided with management to thwart his board challenge, at least for now.
The showdown reflected Disney’s struggle to revive its business amid stagnant subscriber growth, costly streamer losses, and cultural backlash from Peltz and conservatives over its increased embrace of social issues.
