In the ongoing proxy battle between Trian Fund Management and Walt Disney, it has been revealed that Trian withheld its votes from CEO Bob Iger. This move, while not entirely surprising given the acrimonious nature of the battle, contradicts Trian’s proxy recommendations. Despite public statements from Nelson Peltz about wanting to work together with management if elected to the Disney board, actions speak louder than words. The decision to withhold votes raises concerns about the dynamics in the boardroom if Peltz is successful in his bid.
In response to the escalating conflict, Disney has intensified its attacks on Trian and Peltz. An investor presentation from Disney titled “Correcting Trian’s Fact With Fiction” featured an image of Pinocchio with a growing nose. Peltz, on the other hand, has denied any intention to fire CEO Bob Iger, stating in an interview with the Financial Times, “We don’t fire CEOs.” Despite this, Trian’s actions of withholding votes from Iger paint a different picture of the firm’s intentions.
While Trian has officially recommended shareholders to vote for Peltz and former Disney CFO Jay Rasulo, the decision to withhold votes from Disney nominees, including Iger, suggests a lack of support for current leadership. This raises questions about the level of toxicity that could exist in the boardroom if Peltz and his allies are successful in their bid for seats on the Disney board. The upcoming board meeting on April 3 will be crucial in determining the future direction of the company.
With Trian’s relatively small position in Disney amounting to about 1.5% of outstanding shares, the outcome of the proxy battle remains uncertain. The support of former Marvel Entertainment Chairman and CEO Ike Perlmutter, who has aligned himself with Peltz, adds another layer of complexity to the situation. The implications of a boardroom shakeup at Disney could have far-reaching consequences for the company’s future strategic direction and leadership stability.
The proxy battle between Trian Fund Management and Walt Disney is far from over. The decision to withhold votes from CEO Bob Iger raises questions about the true intentions of Peltz and his firm. As the battle heats up in the coming weeks leading to the board meeting, all eyes will be on the outcome and its potential impact on the entertainment giant.