In a heated proxy battle, Disney shareholders have rejected board nominees allied with activist investor Nelson Peltz, showing their support for the entertainment giant’s current leadership.
The majority of shareholders backed Disney’s own slate of 12 board nominees over those proposed by Trian Partners, led by Peltz. Trian Partners had been critical of Disney’s growth strategy, calling for a plan for a successor to current CEO Bob Iger.
Peltz and former Disney CFO Jay Rasulo sought board seats, specifically advocating for a change in Disney’s streaming strategy. While Disney’s shift to streaming has been successful with the launch of Disney+, the platform has yet to turn a profit.
Peltz’s activist campaign urged for cost cuts, a review of the creative process, and a focus on acquiring new intellectual property. Disney recently reported 111.3 million Disney+ subscribers, though it lost 1.3 million in the final quarter of 2023.
Despite the challenges, Disney has managed to slash streaming-related financial losses by $300 million over three months, with a goal of cutting $7.5 billion in costs by the end of fiscal year 2024. The company’s stock price has risen 23% but remains 30% down from its high in March 2021.
Succession planning at Disney has been a key point of contention, with Iger delaying his departure multiple times. Trian Partners has urged Disney to clarify the succession process and undertake a thorough search for Iger’s replacement.
Iger, who received a contract extension last year, has emphasized his commitment to a smooth succession process. The future of Disney’s leadership and streaming strategy remains a central focus for shareholders and industry observers alike.
