Here's What's at Stake in Disney's Proxy Battle With Nelson Peltz
Activist investor Nelson Peltz is seeking two of Disney's board seats.
The Walt Disney Company's (DIS) ongoing proxy battle against Nelson Peltz's Trian Partners has intensified as the results of the shareholder vote are expected to be announced at the annual stockholders meeting on Wednesday.
Trian currently owns 32.3 million shares of Disney stock worth approximately $3.5 billion and is seeking two seats on the board of directors to "improve the focus, alignment and accountability of the Board," Trian said in an open letter to Disney shareholders.
Trian's campaign has garnered support from notable investors including the California Public Employees' Retirement System (CalPERS) and Neuberger Berman, highlighting concerns over Disney's failed succession planning for CEO Bob Iger, amongst other issues.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Iger left Disney in 2020, putting Bob Chapek in his place. Following struggles amid the COVID-19 pandemic, Chapek was replaced in 2022 – by Iger, returning to the top seat at the company. Peltz has also publicly pointed to "big losers" in Disney's recent movie launches, and struggles with streaming profitability.
"Disney's spaghetti-against-the-wall 'plan' includes a $1.5 billion-dollar strategic investment that, according to Disney's own chief financial officer, lacks a product roadmap or expected return targets, and a sports streaming venture that likely confused consumers, surprised important content partners and competes with the company's own services," Trian Partners said in February.
Disney announced a $1.5 billion investment in Epic Games, the maker of the video game Fortnite. The "sports streaming venture" apparently refers to an announced sports streaming bundle combined between ESPN, FOX and Warner Bros. Discovery (WBD).
However, Disney is winning the proxy fight, according to people familiar with the matter as reported by Lauren Thomas and Robbie Whelan for the Wall Street Journal. BlackRock (BLK), Disney's second-largest shareholder with a 4.2% stake, and T. Rowe Price (TROW), a smaller shareholder with a 0.5% stake, have both sided with Disney, WSJ reported. The fate of the battle "lies heavily in the hands of just a handful of large shareholders," including Vanguard, BlackRock and State Street (STT), which own more than 16% of outstanding shares combined, Thomas and Whelan added.
Iger and other Disney directors have suggested that "letting Peltz join the board would be disruptive and counterproductive," according to WSJ.
The results of the proxy vote are expected to be announced at Disney's 2024 Annual Meeting of Shareholders on Wednesday, April 3.
How to make your proxy vote
If you are a shareholder of Disney, you can make your proxy vote by following these steps:
- Go to proxyvote.com from any computer or mobile device
- Enter the unique control number that appears on your Proxy Card
- Indicate your vote on each proposal
- Submit your selections by clicking "Final Selection"
For more information, you can visit Broadridge's dedicated webpage on how to vote your proxy.
Related Content
-
The Top 10 Side Gigs For Retirees In 2026Money is freedom in retirement; here’s how to earn more of it with a profitable side gig
-
3 Retirement Changes to Watch in 2026: Tax EditionRetirement Taxes Between the Social Security "senior bonus" phaseout and changes to Roth tax rules, your 2026 retirement plan may need an update. Here's what to know.
-
The 'Yes, And...' Rule for RetirementRetirement rarely follows the script. That’s why the best retirees learn to improvise.
-
What Not to Do After Inheriting Wealth: 4 Mistakes That Could Cost You EverythingGen X and Millennials are expected to receive trillions of dollars in inheritance. Unless it's managed properly, the money could slip through their fingers.
-
'The Money Prism' Solves Retirement Money's Biggest Headache: Here's HowThis simple, three-zone system (Blue for bills, Green for paycheck, Red for growth) helps you organize your retirement savings by purpose and time.
-
No, AI Can't Plan Your Retirement: This (Human) Investment Adviser Explains WhyAI has infinite uses. But creating an accurate retirement strategy based on your unique goals is one place where its possibilities seem lacking.
-
Humanoid Robots Are About to be Put to the TestThe Kiplinger Letter Robot makers are in a full-on sprint to take over factories, warehouses and homes, but lofty visions of rapid adoption are outpacing the technology’s reality.
-
A Value Focus Clips Returns for This Mairs & Power Growth FundRough years for UnitedHealth and Fiserv have weighed on returns for one of our favorite mutual funds.
-
Small-Cap Stocks Gain Momentum. That's Good News for This iShares ETFThe clouds appear to be parting for small-cap stocks, which bodes well for one of our favorite exchange-traded funds.
-
How Drones Can Affect Your Insurance CoverageHow insurers are using aerial imagery to assess homes, the backlash from policyholders and how state regulators are trying to rein in the practice.
-
My First $1 Million: Risk Management Consultant, 55, Marlborough, Mass.Ever wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
