Key Takeaways
- Walt Disney Co. said two investment firms that support Chief Executive Officer (CEO) Bob Iger plan to back him at the 2024 shareholder meeting, amid investor calls for change.
- ValueAct Capital Management L.P. said it will vote for the slate of directors offered by the company, while Blackwells Capital LLC indicated it plans to nominate three to the board.
- The moves came as activist investor Nelson Peltz demands changes at Disney, and seeks to join the board.
The battle for control of the leadership of Walt Disney Co. (DIS) has heated up.
The entertainment giant on Wednesday announced decisions by two investment firms that will support the efforts of Chief Executive (CEO) Bob Iger, who faces scrutiny by an activist investor.
The company said it has entered into a confidentiality agreement with ValueAct Capital Management L.P. that enables Disney to “provide information to the investment firm and consult with ValueAct on strategic matters, including through meetings with the Disney Board and management.” It added that ValueAct has committed to backing the slate of candidates for the board proposed by Disney at the 2024 shareholders meeting later in the year.
ValueAct Co-CEO and Chief Financial Officer (CFO) Mason Morfit said in a press release Wednesday that ValueAct “could not be more excited to partner with Bob and the Board to help create long-term sustainable shareholder value.”
Blackwells Capital LLC has given notice of its intent to nominate three individuals for election to the board, Disney said. The company’s Governance and Nominating Committee would review the nominees and make recommendations, Disney said. However, Blackwells has supported Iger in the past.
The moves came as activist investor Nelson Peltz and his Trian Fund Management have been pressuring Iger to make significant changes to Disney since he returned for a second stint as CEO in November 2022.
Peltz wants to join the board and wants to bring former Disney CFO Jay Rasulo along with him. He argued last month that Disney’s earnings and stock have underperformed and that the board has “failed to fulfill its essential responsibilities—overseeing the development of an effective strategy, planning for orderly succession, aligning executive pay with performance, and ensuring accountability for operational execution.”
Shares of Walt Disney were mostly flat midday Wednesday.
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