Disney has set an April 3 date for its annual meeting at which Trian Partners’ Nelson Peltz will learn the fate of his bid for a board seat.
In its definitive proxy statement filed on February 6, Disney set a record date of February 8, the same day the entertainment giant is set to report on its latest earnings.
Disney also revealed that the proxy solicitation will cost an estimated $40 million. “We will pay Innisfree a fee of approximately $2.5 million and reimburse them for certain out-of-pocket disbursements and expenses. Innisfree expects that approximately 250 of its employees will assist in the solicitation.”
The expense incurred to date in connection with the solicitation is approximately $6 million.
Trian has urged fellow Disney investors to withhold on incumbent director Michael Froman, a former U.S. Trade Representative, from the company’s 12-person slate, and elect Peltz in his place.
However, the company has insisted that it does not support Peltz’ nomination as he has “not presented a single strategic idea for Disney” despite months of engagement. The board also singled out his “lack of media or technology industry experience coupled with his repeated focus in his presentation on successful approaches from businesses like Heinz, Procter & Gamble and DuPont which have little in common with Disney.”
For its part, Trian has contended that Peltz can help Disney address its challenges which have been cited to include its share price performance, the profitability of its streaming arm, and succession planning. It stated this would focus on fixing corporate governance, strategy and operations, and capital allocation.