The recent annual shareholder meeting of The Walt Disney Co. marked the conclusion of a proxy fight led by Nelson Peltz and his Trian Fund Management. Despite the intense campaigning and significant financial investments made by both sides, Peltz failed to secure the two board seats he was vying for, ultimately being defeated by Chairman and CEO Bob Iger.
The meeting saw all 12 of Disney’s board nominees being approved by the shareholders. While the event lacked the anticipated drama, it shed light on the concerns among investors regarding Iger’s succession planning and operational strategies. The final vote totals revealed that Iger ranked fourth among all board nominees, with about 69% of all outstanding shares being voted.
Iger received votes representing approximately 1.12 billion shares, with 72 million shares withheld. Impressively, more than 90% of the shareholder base backed him. On the other hand, Peltz received endorsements from 369.8 million shares, amounting to around 31% of the total, while Jay Rasulo, Peltz’s running mate, received significantly fewer votes.
The election results highlighted concerns raised by Trian regarding Disney’s board’s leniency towards Iger’s decisions over the years. Initially serving as CEO for 14 years and returning in 2022, Iger faced criticism for certain operational decisions. Maria Elena Lagomasino, a board nominee targeted by Trian, received a significant number of votes withheld, indicating shareholder skepticism.
Notable Vote-Getters
While Lagomasino faced challenges, Michael Froman, another nominee criticized by Trian, fared better with over 1 billion votes in favor. James Gorman, the former Morgan Stanley CEO, emerged as the top vote-getter among the nominees, receiving support from approximately 1.16 billion shares.
Interestingly, three additional nominees proposed by Blackwells Capital received minimal shareholder support, with only 2% backing them. This diverse range of support levels among the board nominees reflects the varying perspectives and interests of Disney’s shareholders.
The shareholder meeting at The Walt Disney Co. provided valuable insights into the challenges and dynamics surrounding the company’s board of directors. While the approved nominees signal a level of confidence from the majority of shareholders, the differing levels of support for individual nominees underscore the complexities of corporate governance and investor relations within a major corporation like Disney. As the company navigates through these challenges, the decisions made by the board and executive leadership will be closely scrutinized by shareholders and industry observers alike.
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