Nelson Peltz Says He Backs Iger Even as Trian Withholds Votes From the Disney CEO
As Nelson Peltz’s proxy battle with The Walt Disney Company enters its final weeks, the activist investor and his Trian Group are making a final pitch to shareholders.
Even though they withheld its voters for Bob Iger’s reelection to the Disney board, Trian released a statement on Monday emphasizing that their dispute is not with the Disney CEO but with the board’s composition.
“In this election contest, Disney has emphasized that Mr. Iger is admired and respected (including, for example, by service providers and advisors), which we do not doubt,” the hedge fund said in the statement.
“Trian supports Mr. Iger as a candidate for the board and as CEO. That Disney spends so much time and ink defending Mr. Iger — while saying almost nothing about the two director candidates whose reelection Trian is challenging — is both troubling and telling. This campaign is not about Mr. Iger, nor is it a referendum on his leadership. And in all events, Disney is, and must be, more than just one person, especially one whose contract expires in less than two short years.”
Iger Has Racked Up Support
As the battle between Iger and Trian ramped up in recent weeks, Iger has scored a series of endorsements from Hollywood luminaries and Wall Street titans. Among those lending their support to Iger were George Lucas, JP Morgan Chase CEO Jamie Dimon, and Laurene Powell Jobs.
According to Trian, however, they do not question Iger’s competency but instead assert that Disney has failed to set up a successor to the Disney CEO.
“Trian supports Mr. Iger as a candidate for the board and as CEO,” today’s statement read. However, the Disney board has “botched its most important job – CEO succession – by installing Bob Chapek in that role seemingly without appropriate vetting or oversight. The board then renewed Mr. Chapek’s contract just months before firing him for poor performance. Ultimately, the board had to call Bob Iger out of retirement to fill the void.”
The Battle Is Coming to an End
For their part, Disney has called Trian’s proxy fight “disruptive and destructive” and said that Peltz’s desire for board seats “seems more about vanity than a belief in Disney.”
The battle between Trian and Disney will come to a head at The Walt Disney Company’s annual meeting on April 3.
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