The Disney Board Responds to Unsolicited Nominations, Defending Already “Highly Qualified”

Disney has officially responded to activist shareholder Trian Fund Management’s attempt to nominate its co-founder, Nelson Peltz, and former Disney CFO, James Rasulo, to the company’s Board of Directors.

Disney stated that a Board committee will assess the nominations but emphasised that Trian has joined forces with former Marvel Entertainment boss Ike Perlmutter. Earlier this year, Disney rejected Trian’s request for a Board presence, citing Perlmutter’s “longstanding personal agenda” against CEO Bob Iger. Perlmutter, previously associated with Peltz, was removed from Disney by Iger after conflicts with Marvel chief Kevin Feige. Rasulo, once considered a potential successor to Iger, served as an executive from 1986 to 2015, including five years as CFO and a stint as Chairman of Parks and Resorts.

Disney defended its current Board, emphasising its experience, diversity, and qualifications. The Governance and Nomination Committee will review Trian’s nominees and provide a recommendation. Disney recently appointed Jeremy Darroch and James Gorman to the Board. The clash between Iger and Trian, which owns $3 billion in Disney stock, may unfold at the 2024 annual shareholder meeting. Iger addressed Trian’s efforts at the New York Times DealBook Summit, noting ongoing cost-cutting and strategic initiatives.

The company plans to file materials for the 2024 Annual Meeting of Shareholders with the Securities and Exchange Commission (SEC), including the Board’s recommended Director nominees. Shareholders are not required to take action at this time.