Peltz Escalates Disney Critique Post Board Rejection
Nelson Peltz, through his Trian Fund Management LP, has intensified his criticism of Walt Disney Co.'s leadership, highlighting the company's inability to rectify "self-inflicted wounds" and calling for "Netflix-like margins." This renewed attack comes shortly after Disney rejected Peltz’s bid for a board position.
Trian Fund Management, holding approximately $3 billion in Disney stock, restated its demand for significant changes in the company’s governance and strategy in a proxy statement released Thursday. The fund had previously nominated Peltz and Jay Rasulo, a former Disney CFO, for board positions as part of its strategy to boost the company’s performance.
Disney dismissed these nominations, questioning Peltz's lack of fresh ideas and Rasulo's prolonged absence from the media sector. Peltz expressed disappointment at Disney's reluctance to engage meaningfully with Trian, which he described as the company's "largest active shareowner."
Despite Disney's claim of having multiple "meaningful" interactions with Peltz, including a meeting between Peltz and Disney CEO Bob Iger, the tension between the parties remains unresolved.
Peltz has been a vocal critic of Disney’s management, particularly the mishandling of the CEO transition after Iger returned to lead the company in 2022, following the dismissal of his successor, Bob Chapek. Peltz's statement accuses the Disney board, mainly composed of legacy directors, of failing in areas like CEO succession planning, aligning management incentives, and driving the streaming business towards profitability.
Trian's vision for Disney includes targeting margins comparable to Netflix Inc.'s 15% to 20% by 2027 and conducting a board-led review of creative processes to regain its leading position in the box office. The firm plans to elaborate on its objectives and strategies in a detailed shareholder presentation in the future.
Amidst this backdrop, Disney has entered an information-sharing agreement with another activist shareholder, ValueAct Capital, in a move seen as countering Peltz’s pressure. ValueAct, known for its cordial relationship with Disney’s CEO, plans to back Disney's board nominees, including Morgan Stanley Chairman James Gorman, in the upcoming annual meeting.