Rejecting Walt Disney Co.'s bid for boardroom stability, an influential corporate research firm has recommended that shareholders add billionaire Nelson Peltz to the Disney board, raising the stakes for next month's proxy showdown.
On Thursday, Institutional Shareholder Services Inc. — which advises the large institutional funds on corporate governance matters — recommended that investors vote to give the vocal Trian Fund Management founder a coveted seat on Disney's board of directors. ISS made its recommendation, in part, because of Disney's bungled succession planning.
The recommendation adds to the challenges facing Disney Chief Executive Bob Iger, who has struggled to set Disney onto a strong financial path after returning as CEO in November 2022 after a brief retirement. The company has had numerous setbacks during the last four years, including COVID-19-related closures that stymied the company's theme parks, cruise lines and theatrical business and a tumultuous tenure by former CEO Bob Chapek.
Audiences' shift to streaming and rampant cord-cutting have eroded Disney's profitable linear TV business. And last year's dual strikes by actors and writers also left big gaps in the programming pipeline.
"Iger's return may have been sufficient to plug the holes, and management has since taken several actions to plot a better course. With any luck, the favorable winds of renewed cinematic success should convince shareholders that Disney is again headed for safer ports," ISS said in its report. "What remains missing is tangible progress towards succession to give investors sufficient confidence that the company will not run aground after Iger departs, and in doing so, avoid future mutinies."
The firm was alluding to the internal coup that toppled Iger's hand-picked successor, Chapek, after about two and a half years in the CEO job. Senior Disney executives worked behind the scenes to bring Iger back to replace Chapek.
https://ca.style.yahoo.com/disney-snub-nelson-peltz-lands-153907496.html
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