Disney Leading In Proxy Fight Voting

Walt Disney Co. is currently embroiled in a proxy battle against a group of activist investors, led by billionaire Nelson Peltz and his hedge fund Trian Partners. The battle centers around securing seats on Disney’s board of directors. As of now, Disney is leading in this proxy fight, with more than half of the votes counted1. 

Notably, BlackRock Inc., Disney’s second-largest shareholder, is among the major investors backing Disney’s management. Its backing is a major coup for Disney CEO Bob Iger, who is trying to fend off Trian’s attempt to get two seats on the company’s board while it is in the middle of a dramatic turnaround attempt. 

Additionally, T. Rowe Price Group Inc. plans to support Disney. However, there’s no guarantee that Disney will maintain its lead, as investors are still casting votes and can change their positions. The entertainment giant’s annual meeting is scheduled for April 3.

Nelson Peltz, seeking board seats for himself and Jay Rasulo (Disney’s former CFO), has garnered support from investors such as Neuberger Berman and the California Public Employees’ Retirement System (the nation’s largest pension fund)1. The battle reflects tensions over Disney’s handling of CEO succession and governance decisions.

Iger and his investor relations team, along with several current directors, have been crisscrossing the country in recent weeks suggesting to major shareholders that letting Peltz join the board would be disruptive and counterproductive.

Peltz and his team at Trian, meanwhile, have argued that the Disney board has failed to deliver strong returns to investors and needs help running an orderly CEO succession process after a botched handoff in 2020.