Disney has strongly opposed the recent recommendation by ISS to vote activist investor Nelson Peltz to the board and withhold votes for company board nominee Maria Elena Lagomasino. Mark Parker, chairman of the board, expressed disagreement with ISS’s conclusion, stating that Nelson Peltz does not bring additive skills to the board and lacks a meaningful plan to deliver superior shareholder value.
Glass Lewis, another influential proxy advisory firm, has sided with Disney by endorsing all Disney nominees as the best qualified to provide diligent oversight of management and create sustainable shareholder value. Disney argues that the current board has overseen strong performance and results, emphasizing its focus on long-term shareholder value creation and succession planning.
Disney pointed out that Nelson Peltz’s association with former Disney employee Ike Perlmutter, who owns a significant portion of Trian’s Disney shares, could be a potential conflict of interest. Disney highlighted Perlmutter’s history of personal agenda against Disney’s CEO, Robert A. Iger, which may hinder Peltz’s ability to work constructively with the board and impact the company’s continued turnaround efforts.
Despite the concerns raised by Disney, ISS argued that Nelson Peltz would still bring value to the board, especially considering what it described as critically flawed succession planning at Disney. ISS also acknowledged Maria Elena Lagomasino’s qualifications as a seasoned financial leader with extensive experience in corporate governance and fiduciary responsibility.
The battle for board seats at Disney highlights the complexities of corporate governance and the importance of selecting qualified individuals to serve on the board. While ISS and Disney have differing opinions on the suitability of board nominees, both parties are ultimately focused on promoting long-term shareholder value and ensuring effective oversight of the company’s operations. As shareholders prepare to cast their votes, the outcome of this boardroom battle will have far-reaching implications for Disney’s future direction and leadership.
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