World Courant
Disney was handed a setback in its boardroom struggle with activist investor Nelson Peltz after proxy-advisory agency Institutional Shareholder Companies really helpful that shareholders vote him onto the Mouse Home’s board.
ISS, whose suggestions are influential amongst institutional traders, cited Disney’s “failed” succession planning within the CEO function for backing Peltz. In 2022, Bob Iger returned as chief government of the media conglomerate after the ouster of Bob Chapek, previously head of Disney’s parks division, whom Iger had hand-picked to succeed him in February 2020.
“Dissident nominee Peltz, as a big shareholder, might be additive to the succession course of, offering assurance to different traders that the board is correctly engaged this time round,” ISS mentioned within the report Thursday.
Whereas some traders “have possible drawn consolation from Iger’s return,” ISS mentioned within the report, “given the key missteps and extreme penalties of the failed 2020 succession, notably for a corporation that already had a historical past of succession drama, it might be troublesome for others to easily belief that the board, albeit refreshed, will get it proper this time. These shareholders could also be involved about post-Iger (Disney). Our evaluation favors this latter view.”
On Monday, impartial proxy voting advisory agency Glass Lewis issued a report recommending Disney shareholders vote for Disney’s 12 director nominees.
Individually Thursday, Trian assembled a bunch of 13 present and former public firm administrators who’ve labored with Peltz and Trian to ship a letter to Disney’s board of administrators detailing their “constructive experiences” working with Trian.
Signatories embrace former administrators at HJ Heinz and Procter & Gamble, the place Trian joined the board following a proxy contest, in addition to Janus Henderson, Legg Mason, Mondelēz, Sysco, and Wendy’s.
“A few of us, such as you, had been skeptical about Nelson and had been initially against the notion of getting him on our boards. A few of us apprehensive that he may derail the profitable execution of our technique. Nevertheless, after having labored with Nelson, we all know that our considerations had been misplaced. The businesses for which we served as board members alongside Nelson had been improved due to his presence on the board.” The letter concludes, “Every of us would fortunately serve with Nelson once more on one other board.”
The complete textual content of the letter may be discovered at this hyperlink.
ISS Recommends Disney Shareholders Elect Nelson Peltz to Board
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