Renowned activist investor and billionaire Nelson Peltz, currently embroiled in a proxy battle with Walt Disney (NYSE:DIS), has voiced strong criticism of the entertainment giant’s board oversight, deeming it “awful.” Peltz, the driving force behind Trian Fund Management, emphasized in a recent CNBC interview that the company is not being efficiently managed. To read more about Nelson Peltz, click here. This critique coincides with the official launch of Peltz’s proxy campaign, where he aims to secure board positions for himself and former Disney CFO Jay Rasulo, challenging the current leadership led by CEO Bob Iger.
In his analysis, Peltz underscored the need for increased capital investment in Disney’s parks, expressing concern about their aging infrastructure. His remarks come at a time when other activist investors, such as Blackwells Capital, are also vying for influence by nominating directors to the board in support of Iger. Simultaneously, Ancora, another activist investor, has advocated for Peltz’s inclusion on Disney’s board.
Peltz’s criticism is rooted in his discontent with Disney’s recent performance under Iger’s leadership, especially in the wake of substantial losses in the streaming unit and movie underperformance. Trian Fund Management, holding approximately $3 billion worth of Disney’s common stock, has consistently voiced disapproval of Iger and the company’s strategic direction. Last month, Trian nominated Peltz and Rasulo as potential additions to Disney’s board.
Highlighting past attempts, Peltz disclosed that he had previously sought a board seat, but his efforts were rebuffed by Disney. Despite the company’s assurances of improvement, Peltz observed a decline in stock value and overall results, leading to his decision to no longer extend opportunities to Disney. In a notable development, former Morgan Stanley Chief Executive James Gorman is set to join Disney’s board of directors in February, indicating ongoing changes within the company’s leadership structure.
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