Disney Divided in Proxy Battle... ISS Supports "Pelz"

"Disney Fails to Find Successor for CEO Iger"
'Star Wars' Lucas, JP Morgan CEO Joins Disney Side

Walt Disney is facing a battle for control ahead of its annual shareholders' meeting on the 3rd of next month, with proxy advisory firm ISS siding with the activist fund. Previously, heavyweights such as 'Hollywood legend' George Lucas and 'Wall Street emperor' Jamie Dimon, CEO of JP Morgan, have taken Disney's side, signaling an intense proxy fight.

According to CNBC on the 21st (local time), ISS recommended supporting Nelson Peltz of the activist fund Trian Fund Management in a report.

[Image source=Reuters Yonhap News]

Peltz and Trian Fund declared in late November last year that they would engage in a proxy fight against Disney's board and have since attacked the board and management. Their goal is to secure seats on the board for themselves and former Disney CFO Jay Rasulo to improve the halved stock price and financial performance over the past three years and to revamp the TV channel strategy.

ISS stated that if Peltz, one of Disney's major shareholders, becomes a board member, it could reassure other investors that the board is functioning well. ISS also criticized Disney's board for repeatedly failing to find a CEO to replace Bob Iger. CEO Iger stepped down from Disney's top position in 2020 but returned in 2022 after his successor, CEO Bob Chapek, was dismissed due to poor performance.

ISS recommended withholding support for director Maria Elena Lagomasino, a former JP Morgan executive. Lagomasino is one of the directors targeted for replacement by Peltz and Trian Fund.

However, ISS stated it does not support former CFO Rasulo, as he was once considered a potential successor to CEO Iger and could cause further friction on the board. Disney responded by saying that ISS "failed to recognize the diverse skills and experience of Disney's board."

As Disney's shareholders' meeting approaches, the battle for control is intensifying. On the 19th, legendary filmmaker Lucas, who created 'Star Wars' and 'Indiana Jones,' issued a statement supporting CEO Iger. When Disney acquired Lucasfilm in 2012, Lucas received 37.1 million Disney shares, becoming the largest individual shareholder. Additionally, on the 14th, Jamie Dimon, CEO of JP Morgan, publicly expressed support for CEO Iger, opposing Peltz and Trian Fund.

CNBC noted, "Securing the support of proxy advisory firms is very important for activist funds," adding, "Large institutional investors do not always, but generally vote according to the recommendations of advisory firms."

This content was produced with the assistance of AI translation services.