Disney Sends a Letter To Shareholders Touting Its Board Nominees and Opposing Peltz and Blackwells
As The Walt Disney Company gears up for its showdown with activist investor Nelson Peltz, the company has sent a letter to shareholders, highlighting the strength of its Board of Directors and asking them to support the Disney nominees.
“Disney has the right strategy to drive profitable growth and value creation for shareholders and has made substantial progress against our objectives to make our business more efficient and effective, including a sharpened focus on our greatest brand and franchise assets, a continued commitment to cutting costs and a reinstatement of the dividend,” Disney wrote.
“The Company, its management, and the Board remain focused on this building plan, which will position our streaming businesses for sustained growth and profitability, reinvigorate the Company’s film studios, fortify ESPN for the future, and turbocharge growth in Disney’s Experiences business.”
Disney vs. Peltz
Nelson Peltz and Trian Management are once again making a move for seats on the Disney board, with Trian officially nominating both Peltz and former Disney CFO Jay Rasulo.
Disney has been vocal about their opposition to both candidates.
“Mr. Peltz brings no media experience and has presented no strategic ideas for Disney, while Mr. Rasulo’s perspective is stale given he left Disney in 2015 and has not held any executive positions in the industry since,” they said.
Disney Also Opposes the Blackwells’ Candidates
While Peltz and Trian have been a thorn in Disney’s side before, at the upcoming Annual Meeting, Disney’s board nominees will also be going up against a trio of nominees by Blackwells.’
Unlike Peltz and Trian, Blackwells has publically supported Bob Iger and the Disney board. Still, Disney opposes the three Blackwells nominees.
“The board also does not endorse the nominations of Craig Hatkoff, Jessica Schell, and Leah Solivan put forth for election as directors by Blackwells Onshore I LLC, Blackwells Capital LLC, and Jason Aintabi,” Disney wrote.
Disney’s Nominees
For their part, the Disney board offered twelve nominations: Mary T. Barra, Safra A. Catz, Amy L. Chang, D. Jeremy Darroch, Carolyn N. Everson, Michael B.G. Froman, James P. Gorman, Robert A. Iger, Maria Elena Lagomasino, Calvin R. McDonald, Mark G. Parker, and Derica W. Rice.
“Disney believes all 12 of its nominees are best qualified to create sustainable shareholder value. The Disney Board of Directors is comprised of engaged, diverse and dynamic leaders whose skills, perspectives and insights are essential in driving profitable growth and delivering on Disney’s strategic priorities as the Company navigates ongoing, industry-wide challenges.”
Traditionally, shareholders have followed Disney’s wishes and towed the company line. With both Blackwells and Trian publically opposing the Disney candidates, however, the company will need all hands on deck.
The Walt Disney Company annual meeting will be held on April 3 at 1 p.m. ET.