The Walt Disney Company logo appears on the floor of the New York Stock Exchange during morning trading on December 1, 2023.
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Proxy advisory firm Institutional Shareholder Services advises Thursday walt disney Shareholders elected activist investor Nelson Peltz to the board in a bitter battle with Chief Executive Bob Iger.
Peltz and his company, Trian Fund Management, have asked investors to nominate him and former Disney CFO Jay Rasulo to the board of directors at the April 3 annual shareholder meeting. Among other things, Peltz wants to overhaul Disney’s legacy TV channels. The claims business continues to shrink and shareholder value continues to be lost.
“Dissident nominee Peltz, as a significant shareholder, can complement the succession process by assuring other investors that the board is engaged appropriately this time around,” the ISS report said.
While backing Peltz, ISS told shareholders not to back Rasulo in the fight, citing his previous positioning as a potential successor to Iger.
“While we do not have any concerns about his ability to serve as an objective director, we recognize that Rasulo’s potential presence could create additional friction for the board,” ISS said.
ISS blasted the Disney board for its repeated failure to find a new CEO to replace Iger, who resigned as CEO in 2020 but returned to the post several years later.
ISS also said shareholders should not vote for another batch of nominees for activist Blackwells. As a proxy advisory firm, ISS can influence hundreds of investors through its recommendations.
The recommendation comes as Disney has received a number of high-profile endorsements, including heirs to Walt Disney and Roy Disney, JPMorgan CEO Jamie Dimon and top Disney shareholder and film producer George Lew Cass.
Another agency consulting firm, Glass Lewis, approved Disney’s slate of board nominees earlier this week. The International Space Station is widely expected to follow suit.
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