Walt Disney Company (DIS) activist investor Nelson Peltz has been fighting for months to overhaul the company’s board of directors. Today, investors will find out whether he won.
The results of the shareholder vote to elect board members are expected to be announced at the entertainment giant’s annual general meeting on Wednesday. Voting has officially ended, but officials told Reuters that as of Tuesday night, enough votes had been cast for Disney to safely defeat Mr. Peltz.
Institutional investors Vanguard, BlackRock, and State Street are Disney’s three largest shareholders. According to the Wall Street Journal, BlackRock voted in favor of the company’s current board of directors. Vanguard also voted to uphold the existing board, Reuters reported. State Street’s location is still unknown.
Yahoo Finance confirmed that T. Rowe Price, who has a lowly position at Disney, also supports the company. “We are reassured that management has a viable plan to address the important issues facing the company,” a spokesperson for the investment firm said in an email.
This is a critical moment for Disney, as the company tries to entice consumers to migrate from traditional cable packages to its largely unprofitable streaming service. The company also faces succession issues, with CEO Bob Iger’s contract set to expire at the end of 2026.
Mr. Peltz recently secured the backing of leading proxy advisory firm Institutional Shareholder Services (ISS), which has secured board seats for himself and former Disney chief financial officer Jay Laslo. I’m looking for. Mr. Peltz’s hedge fund, Trian Fund Management, owns $3 billion in Disney common stock, including shares owned by former Marvel Entertainment chairman Ike Perlmutter.
Mr. Peltz is seeking to replace two existing directors, former Mastercard executives Michael Froman and Maria Elena Lagomasino.
Disney, backed by the high-profile proxy firm Glass Lewis, defended Mr. Froman and Mr. Lagomasino in a statement to Yahoo Finance, calling them “highly regarded and dedicated members of the board.” member.”
The company said it had made “significant progress” in rebuilding its business. Some of the changes include raising prices for streaming services and theme parks, cracking down on password sharing, and introducing ad-supported slots on streaming service Disney+.
Investors reacted positively to the change, with Disney stock up about 35% this year.
The shareholder meeting is scheduled to be held at 10:00 PM Pacific Time/1:00 PM Eastern Time. In the meantime, check out what you need to know here.
