The Walt Disney Co. recently held its annual shareholder meeting on April 3rd, which was closely watched due to the proxy fight led by Nelson Peltz from Trian Fund Management. The objective of the fight was to secure two seats on the board of directors, placing a challenge against Chairman and CEO Bob Iger.
Despite the intense campaigning and high financial costs on both sides, Bob Iger emerged victorious as all 12 of Disney’s board nominees were approved by shareholders. The meeting, however, lacked the anticipated drama and instead sent a clear message about Iger’s succession planning and operational concerns amongst investors.
It was revealed that Bob Iger finished in fourth place amongst all board nominees, receiving votes from over 1.1 billion shares while having 72 million shares withheld. Nelson Peltz, on the other hand, garnered the endorsement of 369.8 million shares but had over 800 million shares withheld. This clearly indicates a lack of support for Peltz’s agenda.
Former Disney CFO Jay Rasulo, who was Peltz’s running mate, had a poor outcome with only 139 million shares in favor and over 1 billion shares withheld. Maria Elena Lagomasino, targeted by Trian for her ties to Iger, received a mixed response with 748.6 million votes for and 441.7 million withheld. Meanwhile, Michael Froman, who serves as President of the Council on Foreign Relations, received over 1 billion votes for and 148.6 million withheld, showing stronger support.
James Gorman, the former Morgan Stanley CEO, emerged as the top overall vote-getter among board nominees with over 1.1 billion votes in favor and only 29.4 million withheld. This high level of support indicates confidence in Gorman’s capability to serve on Disney’s board.
Interestingly, three additional nominees put forward by Blackwells Capital only received support from 2% of shareholders, showcasing a lack of confidence in their candidacies.
The Walt Disney Co. shareholder meeting had its share of challenges and revelations. The results of the proxy fight and the level of support for each nominee have provided valuable insights into the sentiments of shareholders regarding the company’s leadership and future direction. It is clear that while some nominees received strong backing, others faced significant opposition, highlighting the importance of effective communication and strategy in securing shareholder support.
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