NEW YORK - Trian Fund Management, L.P., an investment firm and one of the largest shareholders of The Walt Disney Company (NYSE: NYSE:DIS), has nominated Nelson Peltz and Jay Rasulo for election to Disney's Board of Directors. The nominations come as Trian actively opposes the reelection of two incumbent Disney directors ahead of the company's Annual Meeting of Shareholders scheduled for April 3.
Trian has criticized Disney for what it describes as a "scorched-earth campaign" and for deflecting from its own performance issues. The investment firm, which holds a stake in Disney worth over $3.5 billion, asserts that Disney's stock has underperformed during the tenures of the two directors it seeks to replace, Michael B.G. Froman and Maria Elena Lagomasino.
Trian claims that Disney's stock was down more than 20% until Trian began advocating for change and that the company's earnings per share have declined.
In response to Disney's communications, Trian has expressed disappointment with the rhetoric used, stating that it distracts from the real issues and accountability. Trian emphasizes its track record of working with over two dozen public companies in its 20-year history, aiming to improve operations and drive growth.
Trian also disputes Disney's portrayal of its performance, suggesting that the company has selectively presented its stock returns and omitted periods of underperformance. The firm points to Disney's comparison of its performance against weaker competitors rather than a broader peer group.
Moreover, Trian has called into question the credibility of public endorsements Disney has received from parties with financial ties to the company.
The investment firm has outlined its concerns with Disney's strategic decisions, including the handling of the Fox acquisition, lagging media margins, and executive compensation. Trian believes that new board members like Peltz and Rasulo, who are committed to setting ambitious goals and holding management accountable, are necessary to improve Disney's performance.
This article is based on a press release statement from Trian Fund Management, L.P.
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