The battle for the future of Disney between Nelson Peltz and his Trian Fund Management and current leadership is reaching its conclusion. Peltz and Jay Rasulo, a Disney veteran, are seeking board seats that could serve as a check on CEO Bob Iger’s strategic vision. If successful, it would be a blow to Iger and the agenda he has outlined for the company’s future. Despite not having the power to outvote the Iger-supporting board, Peltz and Rasulo could create significant noise and headaches if they disagree with the company’s direction.
If Peltz fails, Iger and the Disney board will have dodged a dangerous trap and emerged with a vote of confidence from investors. The stakes are high for Disney, with its stock price surging nearly 50% over the last six months. Peltz has raised concerns about Iger potentially staying longer than his current contract, criticized Disney’s film strategy, and called for achieving “Netflix-like margins.” However, it remains unclear what specific proposals Peltz has to address these issues other than planning for Iger’s succession.
To support their current playbook, Disney’s leadership has recruited industry heavyweights like George Lucas and Laurene Powell Jobs to voice their support. On the other hand, Peltz has powerful allies like former Marvel Entertainment chief Ike Perlmutter, Institutional Shareholder Services, and CalPERS. Both sides have spent over $60 million trying to convince investors ahead of the annual shareholder meeting where the results of the vote will be disclosed.
Even if Iger and the board emerge victorious, the battle may not be over. Restless investors like Peltz will still be lurking, ready to spring back into action if Disney’s stock price were to fall. The dissatisfaction among shareholders indicates that there may be ongoing challenges for Disney despite the outcome of Wednesday’s vote. The fight has punctured the notion of Iger as an unerring and untouchable leader in Hollywood, with the battle exposing vulnerabilities and humbling experiences for both Iger and the board.
Overall, the outcome of the battle for Disney’s future remains uncertain as the vote approaches. The proxy war between Peltz and the current leadership has raised significant concerns and highlighted the need for strong leadership and strategic planning within the company. Despite the expensive and intense battle, the future direction of Disney will ultimately depend on how the board and management navigate these challenges and address the issues raised by both sides of the conflict. It remains to be seen if any lessons will be learned from this experience or if the conflicts within the company will continue to linger in the aftermath of the shareholder meeting.