Nelson Peltz Scores a Major Endorsement With Just a Week To Go in His Disney Proxy Battle
With just a week to go until The Walt Disney Company’s annual meeting, activist investor Nelson Petlz has scored another major endorsement for his bid to get a seat on the Disney Board.
Proxy advisor Egan-Jones became the second independent firm to publically support Peltz today when they endorsed the activist investor and his ally Jay Rasulo for the Disney board.
Jay Rasulo. Photo: Getty.
The firm is recommending that the shareholders withhold support for Maria Elena Lagomasino and Michael B.G. Froman, who are part of Disney’s slate of nominees.
Why Egan-Jones Wants Peltz on the Board
According to Egan-Jones, the current composition of the board is not flexible enough to be successful in the future.
Nelson Peltz. Photo: CNBC
“We see very little downside and a lot of upsides in putting the Trian nominees on the board,” the firm said.
Additionally, they cited an “apparent lack” of a long-term succession plan and a board that “appears cut off and unwilling to engage with investors and the broader market.”
(Charley Gallay / Getty Images for Disney)
“[Disney’s current business model is built for the last decade, but not forward looking and flexible enough to ensure success in the next,” Egan-Jones said.
They also note that the current board can be characterized by “a desire to protect the status quo for as long as possible and at all costs.”
A Coup For Peltz
Earlier this month, Peltz’s candidacy for a board seat was buoyed by the endorsement of ISS. Unlike Egan-Jones, however, that firm did not recommend shareholders vote for Rasulo.
Photo: REUTERS/Mike Blake
Iger and the Disney board, meanwhile, have been endorsed by advisory firm Glass Lewis, in addition to George Lucas, Laurene Powell Jobs, Jamie Dimon, and several of Walt and Roy Disney’s grandkids.
Photo: Bloomberg
With plenty of support of their own and a surging stock price, Disney will look to vanquish Peltz and Trian once and for all at next week’s annual meeting.
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