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
Be a smarter, better informed investor.
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
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market TodaySHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
-
Selling Your Haunted House? What You Have to Tell Buyers (and What You Don’t)You don’t need ghosts to spook buyers, sometimes a home’s past is enough. Here’s what sellers should know about disclosure laws, pricing and perception when a property has a haunted history.
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market Today
SHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
-
CMS Brings Back Furloughed Staff for Medicare Open Enrollment LifelineThe government has recalled approximately 3,000 workers to assist with Medicare and ACA Marketplace Open Enrollment.
-
Targa Resources, Take-Two Interactive, Boston Scientific: Why Experts Rate These Stocks at Strong BuyWall Street is highly bullish on these three high-quality stocks.
-
Debunking Three Myths About Defined Outcome ETFs (aka Buffered ETFs)Defined outcome ETFs offer a middle ground between traditional equity and fixed-income investments, helping provide downside protection and upside participation.
-
This Is Why Judge Judy Says Details Are Important in Contracts: This Contract Had HolesA couple's disastrous experience with reclaimed wood flooring led to safety hazards and a lesson in the critical importance of detailed contracts.
-
US-China Trade Hopes Send Stocks to New Highs: Stock Market TodayApple and Microsoft are on track to join Nvidia in the $4 trillion market cap club.
-
A Lesson From the School of Rock (and a Financial Adviser) as the Markets Go Around and AroundIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I'm a Financial Pro: This Is How You Can Guide Your Heirs Through the Great Wealth TransferFocus on creating a clear estate plan, communicating your wishes early to avoid family conflict, leaving an ethical will with your values and wisdom and preparing them practically and emotionally.
