Walt Disney Co. began girding itself against a challenge from activist investor Nelson Peltz, who nominated himself to the board in what could become a highly public debate over Chief Executive Officer Bob Iger’s leadership.
Bloomberg reports Mark Parker, the executive chair of Nike Inc., will take over as chairman from Susan Arnold, who is stepping down at the company’s next annual meeting, Disney said Wednesday. Parker will also lead a new succession planning committee to advise Iger, who has been criticized for failing to groom a replacement.
The moves pit one of the most notorious activist investors in corporate America against one of the most revered CEOs in media. Peltz is known for working his way onto the board of companies such as Mondelez International and Procter & Gamble Co. with plans to make them more efficient, sometimes forcing his way in through bruising proxy battles.
Even when he’s unsuccessful, as with a campaign to put Trian nominees on the board of DuPont, his campaigns have led to changes in management and cost-cutting.
In a blistering statement, Trian — which holds a $900 million stake in Disney — noted that the stock is near an eight-year low, a reflection of what it said was failed succession planning, “over-the-top” compensation practices and a lack of cost discipline. Among the issues, Trian said Disney overpaid when it bought Fox’s entertainment assets in 2019 for $71 billion.
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