Nelson Peltz Is Waiting For Disney’s Q4 Earnings To Launch His Next Proxy Battle
Nelson Peltz is the headache that just won’t go away.
Months after the activist investor and his Trian Fund Management ended their proxy fight with The Walt Disney Company, Peltz is reportedly gearing up for another battle to get a seat on the Disney board.
Nelson Peltz
This time, Peltz’s Trian Fund Management has oversight of $2.5 billion of Disney shares, the majority of which belong to Ike Perlmutter, the former head of Marvel Entertainment and a close Peltz ally.
Peltz is Waiting For Disney’s Earnings Report
Perlmutter, a longtime thorn in Bob Iger’s side, was finally let go from the company in March of this year. Now the former Marvel boss and his activist investor alley are back with a vengeance.
Source: AP
Both Trian and Peltz have stayed out of the spotlight since ending their Restore the Magic campaign in February. That will soon change, according to insiders, as Peltz is waiting for Disney’s Q4 2023 earnings report before making his next move.
Following the report, Peltz will decide whether or not to move forward with a proxy fight to nominate new board members. The activist investor would ideally like to be given a seat on the board without going through the nomination process.
Photographer: Patrick T. Fallon/Bloomberg via Getty Images
If Peltz does move forward with his proxy battle, Trian will likely attack Disney’s struggling share price. The stock is currently hovering near 10-year lows.
Peltz’s Spotty Track Record
While Peltz has previously been able to get a seat on the Proctor & Gamble board in 2017, in recent years his reputation has taken a hit.
Photo: RestoretheMagic.com
Jeffrey Sonnenfeld, CEO of the Chief Executive Leadership Institute at the Yale School of Management and a longtime critic of Peltz, and Steven Tian released an analysis during Trian’s last proxy fight which found that more than half of the companies he and his firm targeted underperformed the S&P 500 while he was on their boards.
“Where’s the track record to say that he adds value?” Sonnenfeld said. “He adds distraction like a dripping faucet.”
Photo: CNBC
Still, there is likely little Disney can do to stop Peltz from launching another fight. Trian has the capital to battle for a seat on the board, and Perlmutter wants revenge.
Scott Mlyn | CNBC
Bob Iger will need to rally his troops and instill confidence if he wants to keep Peltz at bay again.
