NEW YORK - Trian Fund Management, L.P., an investment firm holding $3 billion in Walt Disney Company (NYSE: NYSE:DIS) stock, has nominated its CEO Nelson Peltz and former Disney CFO Jay Rasulo for election to Disney's Board of Directors. The nominations were submitted through a preliminary proxy statement filed with the SEC, aiming for board representation at Disney's 2024 Annual Meeting of Shareholders.
Trian's move comes in response to what it describes as Disney's refusal to seriously engage with its largest active shareholder on board representation. Peltz criticized the current Board for its perceived failures in CEO succession planning, misaligned management incentives, and lack of a profitable strategy for Disney's streaming services and content production.
Citing a significant underperformance in Disney's total shareholder return (TSR) relative to peers and the broader market, Trian attributes these issues to inadequate board stewardship. The investment firm proposes to address these challenges with a focus on corporate governance, streaming profitability, a clear plan for ESPN's digital transformation, studio creativity, and growth in the Parks and Experiences segment.
Peltz and Rasulo's approach emphasizes setting ambitious yet achievable goals, tying executive compensation to performance, and ensuring rigorous oversight for operational execution and capital allocation. Trian believes that by adopting an "ownership mentality" and best-in-class governance, it can help "Restore the Magic" at Disney and improve shareholder returns.
This article is based on a press release statement from Trian Fund Management, L.P.
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