It’s a win for Disney, Bob Iger in board proxy battle

Disney CEO Bob Iger’s board successfully defended two activist investors—Nelson Peltz, the founding partner of Trian Fund Management (that owns 1.76% of Disney’s shares valued at $3.5 billion), and firm Blackwells Capital—in a highly contested battle for boardroom seats.

The corporate showdown was the most expensive proxy fight ever. All three parties had spent weeks and millions of dollars campaigning to shareholders to earn their votes. Disney alone spent nearly $40 million.

Peltz wanted two board seats, one for himself and the other for Jay Rusalo (former Disney CFO). He pointed out Disney’s failing share price, which hasn't changed much in 10 years and the fact that Disney+ has not made any significant profits since its inception.

The proxy fight also highlighted concerns over Bob Iger’s succession planning.

Tesla CEO Elon Musk supported Peltz in the fight, while Star Wars creator George Lucas and JPMorgan Chase’s Jamie Dimon vouched for Iger.

The fierce battle ended yesterday when roughly 75% of the investors voted to elect Disney’s entire slate of board nominees, denying Peltz a director position (he received 31% of shareholder votes).

The victory solidifies CEO Bob Iger’s control over the board. He retired in 2020, only to be back in 2022.

But the failure to plan for succession raised by Peltz is something the entertainment giant and Iger are actively trying to address as the current CEO is expected to step down in 2026.