Nelson Peltz
David A Grogan | CNBC
Proxy wars between Disney and activist investment firm Trian Management LP heated up ahead of the company’s annual shareholder meeting.
Earlier in January Trian went public with the struggle for a seat on the Board, taking issue with the $71 billion acquisition of Fox from Disney in 2019, the Board’s missteps in the succession planning process and losses for shareholders.
On Thursday, Trian said Disney shareholders should vote to remove Michael Froman from the board and replace him with Nelson Peltz.
“Trian Group believes Mr. Froman has no experience as a director of a public company outside of Disney,” the company said in a statement Thursday. “In contrast, Nelson Peltz has served on numerous public company boards over the past several years.”
Trian argued that Disney shareholders have lost value over the years because of “weak corporate governance.” The company says Disney will lose more than $120 billion in market value by 2022, earnings per share have fallen 50% since 2018 and indicated Disney is cutting its dividend in 2020.
Trian said it has about 9.4 million shares worth about $1 billion, which it accumulated several months ago.
A Disney spokeswoman did not immediately respond for comment Thursday.
Last month, Disney fired back at Trian, defending CEO Bob Iger’s past acquisition. The company also said Peltz did not understand Disney’s business and lacked the skills to drive shareholder value while not providing strategy. Disney says that place is where it’s at.
“Peltz has no track record in big media or technology, no solutions to offer for the evolving media landscape,” Disney said in an investor presentation released Tuesday.
In the move to preempt and fight Trian in January, Disney said Mark Parker, executive chairman of Nikewill be the new board chairman.
Froman, vice chairman and president of strategic growth at MasterCardhas been a director on the board since 2018. He also served as the US Trade Representative for then President Barack Obama.
Few Disney board members have media experience outside of the Mouse House.