BURBANK, Calif. - The Walt Disney Company (NYSE:DIS) has called upon its shareholders to support the current board's 12 nominees by voting with the WHITE proxy card, rejecting the candidates proposed by Trian Group and Blackwells. The company's annual meeting is set for April 3, 2024, and shareholders on record as of February 5, 2024, are entitled to vote.
Disney's board asserts that the company is on a strategic trajectory to enhance efficiency and growth, emphasizing a focus on core brand assets, cost management, and the reinstatement of dividends. The board has expressed concern that the nominees from Trian Group and Blackwells lack the requisite skills and experience necessary to further the company's growth and shareholder value, especially during continuous industry-wide challenges.
The board's letter to shareholders highlighted recent strategic changes, including the appointment of two new directors, James Gorman and Jeremy Darroch, whose expertise aligns with Disney's business drivers. The company also underlined its commitment to driving profitability in its streaming services, revitalizing film studios, fortifying ESPN, and accelerating growth in the Experiences division.
Disney has communicated its progress, including a targeted $7.5 billion in cost reductions by the end of FY24 and the resumption of shareholder dividends, with a recent payment of $0.30 per share on January 10, 2024. The company remains focused on its long-term strategy, with the board firmly opposing the election of Trian Group's Nelson Peltz and Jay Rasulo, as well as Blackwells' Craig Hatkoff, Jessica Schell, and Leah Solivan.
InvestingPro Insights
As The Walt Disney Company (NYSE:DIS) prepares for its pivotal annual meeting, shareholders are weighing the board's strategic plans against alternate proposals. With Disney's commitment to cost management and growth, it's notable that the company is trading at a high earnings multiple, with a P/E ratio of 75.15. Yet, the adjusted P/E ratio for the last twelve months as of Q4 2023 stands at a more moderate 40.48, reflecting the nuanced financial landscape the company navigates.
InvestingPro Tips highlight that Disney is a prominent player in the Entertainment industry with expectations of net income growth this year. This aligns with the board's confidence in enhancing shareholder value. Additionally, the company has demonstrated a strong return over the last three months, boasting an 18.86% price total return, which may interest investors looking for positive momentum.
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