In a blow to Walt Disney activist Nelson Peltz received a powerful endorsement in his battle against the entertainment conglomerate on Thursday, when proxy advisory firm Institutional Shareholder Services (ISS) recommended shareholders elect him to the board.
Reuters reports ISS, whose recommendations can sway hundreds of investors' votes, said Peltz, a large Disney shareholder, could ensure the board does its job well as it tackles questions of CEO succession and strategy at the home of Mickey Mouse.
The recommendation comes as Disney CEO Bob Iger continues to rally support among a high profile cast that included Emerson Collective founder and president Laurene Powell Jobs on Thursday and Star Wars-creator George Lucas earlier this week.
Peltz's Trian Fund Management is vying for two board seats, one for Peltz and the other for former Disney financial chief Jay Rasulo, while another activist firm, Blackwells Capital, is pushing for three board seats.
The fight over who will help guide Disney, valued at $213 billion, is one of the year's most bitter and closely watched board battles, pitting a prominent activist investor, who says he works well with target companies, against a talented media industry CEO who returned to the top job two years ago after the board fired Iger's hand-picked successor.
Peltz and Blackwells said Disney bungled plans for life after Iger, lost its creative spark and failed to properly harness new technology.
Disney previously dismissed both hedge funds' candidates' qualifications, and on Thursday said it "strongly disagrees" with ISS's recommendation as Peltz "does not bring additive skills to the board."
Shareholders will vote on April 3 and each side has now signed up prominent supporters to press its case with voters. Disney had Star Wars creator George Lucas and JP Morgan banker Jamie Dimon supporting Iger, while a number of business executives on Thursday publicly supported Peltz.
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