Disney CEO Bob Iger is facing a tough battle as activist investor Nelson Peltz continues to push for changes within the company. Despite the ongoing proxy battle, Iger remains focused on turning around Disney’s business.
At a recent conference, Iger expressed his determination to not let the proxy battle distract him from his goal of improving Disney’s performance. He emphasized the importance of staying focused to ensure that the company can deliver results for its shareholders.
Last year, Peltz and his hedge fund Trian Fund Management renewed their efforts to shake up Disney’s board as the company faced challenges in its various business segments. Disney has been dealing with issues such as a declining linear TV business, slower growth in its parks division, and losses in streaming.
Iger highlighted the complexities of running Disney’s diverse business, especially in the face of increased disruption in the industry. He acknowledged the need for knowledge, time, and focus to navigate the challenges and drive success for the company.
The proxy battle escalated when Trian published a 130-page white paper criticizing Disney’s board for underperformance and lack of focus, alignment, and accountability. Peltz is seeking board seats for himself and former Disney CFO Jay Rasulo, with a shareholder meeting scheduled for April 3 to determine the board’s fate.
While another investment firm, Blackwells Capital, supports Disney’s current board, it has nominated three additional candidates for board seats. Despite the turmoil, Disney’s stock has shown resilience, with shares up 11% year over year and climbing 25% since the start of 2024, outpacing the S&P 500’s performance.
As the proxy battle continues to unfold, all eyes will be on the upcoming shareholder meeting to see how the situation will ultimately impact Disney’s future direction and performance.
