The next big challenge for Bob Iger at Disney is activist investor Nelson Peltz
Bob Iger will have another challenge as Disney (disCEO – Activist Investor Nelson Peltz.
On Wednesday, Disney announced Nike CEO Mike Parker will receive Susan Arnold’s position as chair of the board, he also recommended that shareholders vote against Peltz in his efforts to win a seat on the company’s board.
“While the Walt Disney Company’s senior leadership and Board of Directors have reached out to Mr. Peltz several times over the past few months, the Board of Directors does not endorse the Trian Group’s nominee, and recommends that shareholders not support its nominee, and instead vote in respect of all of the Company’s nominees (referenced above). ), Disney wrote in a press release on Wednesday.
Peltz, which he also has Active campaign with Unilever He serves as chairman of Wendy’s, and is now planning a proxy battle, according to The Wall Street Journalto appeal directly to Disney shareholders to gain their support for a place on the company’s board of directors.
Peltz’s Trian Fund Management acquired $800 million in Disney in November. The hedge fund, which has rejected Iger’s surprise return, is reportedly pushing for additional cost cuts and a post-Iger trail — something the company also wants.
Trian did not immediately respond to Yahoo Finance’s request for comment.
“It is a priority for me and the Board to identify and groom a successful CEO successor, and that process has already begun,” Parker said in a statement on Wednesday.
Part of that process will be a newly created committee, chaired by Parker, that will update the board on succession plans, including reviewing internal and external candidates.
Disney also doubled down on the decision behind Iger sudden returnexplaining in the release: “Mr. Iger’s mission is to use his two years and depth of industry experience to adapt the business model to the changing media landscape, rebalancing the investment and revenue opportunity while refocusing on the creative talent that made The Walt Disney Company the envy of the industry.”
The company continued, “Mr. Iger has already taken decisive steps to reorganize content creation and distribution, repositioning Disney’s streaming platforms and broadcast and cable linear networks in order to enhance profitability for the Company.”
In its statement Wednesday, Disney also defended the company’s stock performance under Iger, noting that during his first role as CEO, the company’s total shareholder return was 554%, surpassing the 244% total return achieved by the S&P 500 during that time.
Disney faced a rough 2022 as shares fell nearly 45%, marking the worst annual performance for House of Mouse stock since 1974.
The profitability of broadcasting, the future of Hulu, and the potential for ESPN’s show Everything is in balance As Iger continues to navigate a stressful business filled with leadership challenges, unfavorable price increases, and a direct-to-consumer division struggling to turn a profit.
Alexandra is the chief media and entertainment correspondent for Yahoo Finance. Follow her on Twitter aliecanal8193 and email it to alexandra.canal@yahoofinance.com
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