Disney has vehemently opposed the report issued by ISS recommending activist investor Nelson Peltz to the board, alongside advising shareholders to withhold votes for Disney board nominee Maria Elena Lagomasino. Disney’s chairman of the board, Mark Parker, expressed a strong disagreement with ISS’s conclusion, emphasizing the valuable perspective and expertise that Lagomasino brings to the board.
On the contrary, Glass Lewis, another reputable proxy advisory firm, has shown support for all Disney nominees. Disney reiterates that its 12 Board nominees possess the best qualifications to oversee management diligently and generate sustainable shareholder value, contrasting Peltz’s contribution and proposed plan for added shareholder value.
Disney has raised concerns over Trian Group’s nominee, Nelson Peltz, particularly highlighting the close association with former Disney employee Ike Perlmutter, who owns a significant portion of Trian’s Disney shares. This relationship raises doubts about Peltz’s ability to collaboratively work with Disney’s Board, potentially jeopardizing the company’s progress under CEO Robert A. Iger.
In a surprising move, ISS has chosen to support Nelson Peltz’s candidacy on the board despite acknowledging the contentious background involving Perlmutter. ISS’s stance is primarily based on its assessment of Disney’s flawed succession planning, arguing that Peltz could offer valuable insights in this area.
Moreover, Disney has defended Maria Elena Lagomasino as a seasoned financial leader with a strong background in capital markets and corporate governance. Highlighting her role in founding the Institute for the Fiduciary Standard, Disney emphasizes Lagomasino’s commitment to fiduciary responsibility and investor advocacy.
Overall, the ongoing battle for seats on Disney’s board reflects a clash of perspectives between various stakeholders. While ISS sees potential in Nelson Peltz’s involvement, Disney remains confident in the qualifications and expertise of its existing board members, particularly Maria Elena Lagomasino. The outcome of this dispute will undoubtedly have significant implications for Disney’s future direction and governance practices.
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