In a highly anticipated shareholder vote on Wednesday, Disney shareholders overwhelmingly supported the entertainment giant’s slate of board nominees, effectively rejecting Nelson Peltz’s bid for a board seat and marking a significant victory for CEO Bob Iger.
The showdown, which has been called one of the costliest proxy wars in American business history, ended with a decisive win for Disney’s incumbent board members.
The voting results, announced at the company’s 2024 annual meeting of shareholders held virtually on Wednesday, revealed that all 12 of the board-endorsed nominees were re-elected with a significant amount of support from shareholders.
Elon Musk Advocated for Peltz
Businessman Elon Musk on Wednesday advocated for Nelson Peltz in the investor’s fight with Disney, saying he “should definitely” get a seat on the entertainment giant’s board.
Musk tweeted that “he would help reform the company, improve the quality of product and generally serve in the best interests of shareholders, as he has done at many other companies” and that his track record is excellent.
Ballots for Peltz and Trian
Along with Trian’s other nominee, former Disney CFO Jay Rasulo, Nelson Peltz, who represents the investment firm Trian Partners, was unable to garner enough votes to be elected to the board. Disney released early data showing that Rasulo earned even less support than Peltz, who received only 31% of the total ballots.
Disney’s board nominees’ success indicates that shareholders are satisfied with the company’s present leadership and strategic direction. It follows protracted contention and scrutiny, marked by Trian and Peltz campaigning vigorously for changes to Disney’s governance and strategic priorities.
The Campaign and Reactions
The core of Trian’s campaign was the claim that Disney has underperformed lately and required fresh ideas to revitalize its business and increase shareholder value. Peltz and Trian advocated for reforms to Disney’s board, citing concerns over strategic decision-making, financial performance, and succession planning.
Disney, on the other hand, refuted Trian’s claims by highlighting its commitment to executing key strategic priorities, revitalizing creative efforts, and maximizing shareholder value. The company defended the qualifications of its board nominees, asserting that they were best suited to oversee Disney’s operations and navigate its future challenges.
While Trian’s defeat represents a significant setback for the investor and its agenda, it also highlights the challenges of effecting change in a company as complex as Disney.
After the Vote
In the aftermath of the shareholder vote, both Disney and Trian issued statements acknowledging the outcome. Disney expressed gratitude to its shareholders for their support and reaffirmed its commitment to delivering value for investors. Meanwhile, Trian conveyed disappointment with the results but expressed pride in its efforts to engage with Disney stakeholders and advocate for change.
Disney’s ability to adapt and innovate will be critical to its long-term success. In the coming weeks and months, stakeholders will closely monitor Disney’s performance and strategic decisions, as the company seeks to capitalize on its strengths, address its weaknesses and deliver value for shareholders in an increasingly competitive marketplace.
