For months, a war of words has been raging between Disney CEO Bob Iger and activist investor Nelson Peltz whose private equity firm Trian Partners is one of the largest shareholders in the company. A proxy vote is underway to elect the officers who will serve on the Disney Board of Directors for the upcoming term. The results of this vote will be announced at the highly-anticipated annual shareholder meeting on April 3rd.
Despite both sides in this tug of war touting that they have the support of big-name shareholders, only 22% of Disney’s shareholders had cast their votes as of last Tuesday. And Disney’s largest outside shareholders including financial firms Blackrock and Vanguard have yet to vote. Both sides are making last-minute pitches to key shareholders in these final days.
Iger has been visiting personally with many major shareholders, explaining why he believes that Peltz’s proposed strategy for the company would be detrimental, arguing that Peltz is not proposing any new ideas to produce better results and his activism would only slow down decision-making.
For his part, Peltz has also visited with “dozens” of major shareholders, arguing that the company’s poor stock performance and failed tenure of former CEO Bob Chapek demonstrates a need for fundamental change. Shareholders have reported to the Wall Street Journal that they’ve left these meetings undecided because “both sides make valid points.” The outcome of the vote and its impact on the company remains very much in doubt.