Disney Board Defends Iger Performance

Walt Disney Co. fired back against activist investor Nelson Peltz, saying Tuesday that he didn’t understand the company’s business and shouldn’t be granted a seat on the board, reports The Wall Street Journal.

The entertainment company offered shareholders a 16-page slide deck that defends its Chief Executive Robert Iger against a monthslong campaign by Mr. Peltz to “challenge Mr. Iger’s legacy.”

The company said, “Nelson Peltz does not understand Disney’s business.”

Peltz and his hedge fund Trian Fund Management LP launched a bid last week for a board seat at Disney in an attempt to fix what he is calling a series of self-inflicted wounds that have hobbled the company’s recent performance.

Disney sought to debunk Peltz’s assertions in the presentation by noting total shareholder returns outperformed other media companies during Mr. Iger’s first tenure as CEO, which ended in February 2020. It also said the company plans a reorganization that will cut costs and said it would prioritize profitability in its streaming business. Disney defended its acquisition track record.

Most of all, it said Peltz doesn’t have what it takes to get the board seat he has wanted for months. Mr. Peltz “lacks the skills and experience to assist the board in delivering shareholder value in a rapidly shifting media ecosystem,” Disney said.

The dust-up comes a week after Disney replaced its board chair Susan Arnold with Nike Inc. chairman Mark Parker, a move that Mr. Peltz has dinged as a rubber stamp for the return of Robert Iger. Mr. Iger returned to Disney as CEO in November when the company’s board fired Bob Chapek from the top job.