Key Takeaways:
– Disney shareholders reject Nelson Peltz’s attempt to secure board seats
– CEO Bob Iger retains board seat with 94% votes in his favour
– Proxy war began three months ago over control of two board seats
– Former Disney CFO, Jay Rasulo, also failed in board seat bid
– Disney’s stock price falls 3.1% after board re-election
The three-month proxy battle between Disney CEO Bob Iger and activist investor Nelson Peltz came to a head at Disney’s annual shareholder meeting. Shareholders effectively dismissed Peltz’s bid to secure seats on Disney’s board.
Vote Casts Peltz Aside
Trian Partners’ founder Nelson Peltz launched an aggressive campaign against the current board’s leadership. Peltz’s ally, Jay Rasulo, a former Disney CFO, also sought a seat. However, both Peltz and Rasulo faced rejection as shareholders re-elected all twelve board members, giving an emphatic win to Bob Iger and his team.
The preliminary vote results counted a colossal 94% votes in Iger’s favour, dwarfing the 31% that supported Peltz, and less for Rasulo. This meeting emerged as the most expensive corporate proxy battle in history, highlighting the tension between both the parties involved.
Decline in Disney Shares
Disney’s stock price took a hit, dropping 3.1% following the board re-election, in contrast to the slight rise in the S&P 500 and Nasdaq Composite market indexes. Nonetheless, Disney’s executive team exuded positive sentiments, reaffirming their commitment to driving growth and delivering value to the shareholders despite the trying proxy contest.
Mark Parker, Disney’s chairman, expressed gratitude towards shareholders whilst also praising the board of directors for their commitment. Post-vote, Iger expressed relief and extended thanks to shareholders for their faith in the company’s management.
Peltz Questions Feige’s Marvel Strategy
In an interesting turn of events, Nelson Peltz openly criticised Marvel Studios president Kevin Feige’s track record, particularly alluding to potential box office setbacks due to Marvel’s “woke” approach. Peltz raised questions over Feige’s decision to feature a predominantly female and ‘all-Black’ cast in Marvel movies.
He argued that audiences seek entertainment value rather than a political or social message from movies. However, it’s crucial to clarify that these films do not consist exclusively of female or Black actors.
Steady Course for Disney
Despite the tumultuous shareholders meeting, the board’s decision sets the direction for Disney, securing the current management’s future. As the dust settles, the crucial takeaway is that Disney’s commitment to “creative excellence” remains the backdrop to their strategic operations and future growth plans.
The overwhelming support for Iger and the current board indicates the shareholders’ belief in their vision, despite the critical arguments from Peltz. This victory aligns Disney back towards its course and puts an end to a distracting chapter of corporate infighting.
