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Walt Disney Co DIS CEO Robert Iger faces a new challenge as activist investor Nelson Peltz is planning to fight for a seat on the company’s board.
What Happened: Peltz’s Trian Fund Management executives met with Disney’s top leaders such as Iger and CFO Christine McCarthy on Tuesday in attempts to forge a deal and avoid a proxy battle, but the talks did not yield results, reported the Wall Street Journal, citing people familiar with the matter.
Disney’s outgoing Chair Susan Arnold reportedly called Peltz on Wednesday morning to offer him a role as a board observer and ask him to sign a standstill agreement, but he declined.
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The Burbank, California-based entertainment giant said on Wednesday that its board had elected independent director Mark Parker as chairman.
It added that Parker would chair a newly created Succession Planning Committee. Disney said Trian nominated Peltz for election as director in opposition to nominees recommended by the board.
Why It Matters: Trian wants Disney to plan for a successor to Iger, who was brought back as CEO after Bob Chapek was fired in November.
Trian took a stake of more than $800 million in Disney ahead of Iger’s return as CEO. It has now grown by $100 million and is likely to get bigger, reported the Journal.
Peltz’s firm thinks Disney has excessive compensation practices and does not follow cost discipline, said the Journal, citing people familiar with the matter.
It has reportedly also been critical of Disney’s deals and thinks it overpaid for assets of 21st Century Fox Inc and bid aggressively for Sky PLC.
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Image and article originally from www.benzinga.com. Read the original article here.