Nelson Peltz Says Disney Should Release Fewer Sequels and Take More Creative Risks
As part of their bid to receive two seats on The Walt Disney Company Board of Directors, activist investor Nelson Peltz and his Trian Fund Management have released a blistering 133-page-long “white paper” presentation arguing that Disney has failed at everything from streaming to acquisitions and succession planning.
Trian is gunning for two seats on the Disney board for Peltz and former Disney Chief Financial Officer Jay Rasulo. In their latest presentation, the activist investor argues that the Trian candidates are the right candidates to infuse fresh blood into the boardroom.


Jay Rasulo
“For more than a year, Trian has described its thoughts on strategies and goals, some of which Disney has now implemented, such as reducing excess costs, reinstating a dividend, and making the Parks business a bigger part of Disney’s growth strategy,” the Peltz-run firm says in the white paper. “We are now making our 100+ page presentation public with our comprehensive views.”
Disney Should Take More “Shots on Goal”
Among its proposals, Trian says an influx of creativity is needed at Disney. According to Peltz, the company should take more “shots on goal” to increase creative risks outside of its core franchises. Additionally, Disney should “explore allocating more budget dollars across lower-cost, easier-to-produce projects to further balance Disney’s higher-cost franchise content; prioritizing ‘retention’ content spend should diversify away the risk of expensive streaming flops.”


(Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)
In a marked difference from Bob Iger’s overall strategy, Trian also recommends that Disney make fewer movie sequels.
“Disney’s ‘flywheel’ spins the fastest when the company creates or acquires new intellectual property to monetize,” the white paper says. “Sequels are less risky film ventures to produce, but do not drive long-term benefits in the same way that new IP can.”


Image: Disney
“The percentage of Disney films that are sequels, prequels, spin-offs or remakes has dramatically increased — suggesting a creative engine that is sputtering,” Trian continued. They then called for “a comprehensive review of studio operations and culture.”


Photo: Marvel
Taking Aim at Iger
Finally, Trian turned their attention to Bob Iger and his acquisition of Fox.


Photo by Chip Somodevilla/Getty Images
The Disney-Fox deal, Trian said, was “arguably the result of misaligned incentives.”
“On the same day that Disney agreed to acquire Fox, the board extended Mr. Iger’s employment agreement by four years and awarded him an ‘over-the-top’ compensation package, reasoning that doing so was ‘critical’ to driving long-term value from the acquisition,” the paper says. “In our view, the prospect of a much larger compensation package (more than double his previous package) created a strong financial incentive for Mr. Iger to pursue the Fox deal regardless of its prospects, creating a significant conflict of interest.”


Photo: 20th Century
To read the complete Trian presentation, click here.
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