Disney Sends Letter to Shareholders Touting Board of Director Nominees
As the Walt Disney Company Board of Directors prepares to fend off proxy fights from both Nelson Peltz’s Trian Group and Blackwells, the board has sent a letter to shareholders highlighting the progress that the company has made as part of its strategic transformation.
Among the highlights that Disney drew attention to was the return on the cash dividend. Not only has Disney reinstated dividend payments, but according to the company, they will increase the dividend payment declared for July 2024 by 50%.
Disney is also targeting $3 billion in share buybacks for FY24.
Promises Made, Promises Kept
Other achievements listed as “Promises Made: Promises Kept” included the fact that the company is on track to meet or exceed $7.5 billion in cost-cutting by the end of FY24. That number is a $2 billion increase over their initial targets.
Additionally, the company is on track to generate $8 billion in annual free cash flow in FY24, which is a 60% increase year-over-year.
Disney Touts Their Board Nominees
Disney is asking shareholders to support the company’s 12 nominees, who they are are “uniquely qualified to continue this important progress and create long-term shareholder value.”
“The Disney Board of Directors does not endorse the Trian Group nominees, Nelson Peltz and Jay Rasulo, or the Blackwells nominees, Craig Hatkoff, Jessica Schell, and Leah Solivan, and believes that they are unqualified to serve on Disney’s Board and preserve value creation for shareholders in this increasingly complex global landscape,” the company said.
Today’s letter from the Disney board came as Blackwells made their own pitch to investors. In both an open letter and a corresponding YouTube video, Blackwells’ Jason Aintabi laid out the activist investor’s vision for Disney.
The showdown between Disney, Blackwells, and Trian will come to a head during Disney’s annual meeting on April 3, 2024.
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