The heirs of Walt and Roy Disney, who founded the Walt Disney Company in 1923, have taken a firm stance in the ongoing proxy battle. In a pair of letters addressed to shareholders, nine of the founders’ grandchildren, including Abigail and Roy Disney, have publicly announced their support for Bob Iger12.
They have forcefully rejected the campaign led by Trian Partners CEO Nelson Peltz and others, referring to them as “hedge-fund-backed opportunists.” The heirs express concerns that these activists are not interested in preserving the Disney magic but rather stripping it down to make a quick profit for themselves.
This proxy fight is not merely about the company’s future; it’s a battle for its soul. The Disney heirs draw parallels to a past episode when another corporate raider, Saul Steinberg, attempted a hostile takeover of Disney. Steinberg’s defeat serves as a reminder that the current activists must also be defeated to protect the company’s rich legacy and guide its bright future.
Nelson Peltz, an experienced activist investor, launched his first proxy campaign against Disney in January 2023. His criticisms include Disney’s compensation practices, lack of a succession plan, and weak corporate governance3. However, the Disney heirs stand firmly behind Bob Iger and the current board, emphasizing the importance of preserving the company’s magic and legacy.
In this high-stakes battle, the Disney family rallies behind their CEO, Bob Iger, as they defend the beloved company from what they perceive as wolves in sheep’s clothing.
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