The Walt Disney Co. defended its CEO, board, and track record against attacks from activist investor Trian Partners as it began its part of the year’s big proxy contest.
In a 16-slide presentation Tuesday, the media giant said its board was the right one for shareholders and argued that its stock had outperformed the S&P 500 index since Bob Iger was first appointed to the top job on September 30, 2005. Iger returned as CEO last November, nearly two years after handing the reins to Bob Chapek.
The company also argued that its board had “deftly navigated [the] pandemic” and “acted decisively to address [a] leadership challenge as it emerged.”
Trian Partners, which has nominated its founder Nelson Peltz to the Disney board, argues that Disney struggled with its succession-planning and is overspending on its streaming platform as it tries to compete with Netflix and reduce its dependency on its theme parks.
Indicating that it will likely employ a punchy defense strategy, Disney said Peltz “does not understand Disney’s business and lacks the skills and experience to assist the board in delivering shareholder value in a rapidly shifting media ecosystem.”
It also singled out Peltz’s role on the board of Madison Square Garden Sports and its predecessor Madison Square Garden Networks, saying that total shareholder return had lagged the S&P 500 index, in contrast to Peltz’s claims about the record of boards he has sat on. Trian did not invest in either company.
Disney also filed its preliminary proxy statement on Tuesday, revealing that Marvel Entertainment Chairman Isaac Perlmutter had been advocating for Peltz’s addition to the board from within Disney.
Disney also revealed it had hired proxy solicitation firm Innisfree M&A to help it with the contest.