Disney (DIS) CEO Bob Iger said Tuesday that he is doing his best to ensure that his ongoing proxy battle with activist investor Nelson Peltz does not distract him from turning around the business. Stated.
“I’m working hard not to let this distract me, because when I get distracted, the people working for me… “It’s going to distract everyone and that’s not a good thing.”
Last year, Mr. Peltz and his hedge fund, Trian Fund Management, made a renewed push to shake up the company’s board of directors as stocks hit multi-year lows. Disney is grappling with challenges including a decline in its linear television business, slowing growth in its parks business and losses in its streaming business.
Iger pointed to the complexity of running Disney’s multifaceted business as various areas, such as streaming, face increasing disruption.
“the [a business] Not only does it require a considerable amount of knowledge, but it also requires a huge amount of time and concentration. ” he said. “This campaign is, in some ways, designed to distract us. … It takes time and focus to create what we need for our shareholders.”
Mr. Iger’s comments came after Mr. Tryon released a 130-page white paper on Monday blaming the board for Disney’s poor performance and criticizing its members for lacking “focus, alignment and accountability.” Ta.
Peltz is currently seeking a seat on his board of directors, along with former Disney CFO Jay Laszlo. If the proxy fight continues until the vote, the shareholders’ meeting scheduled for April 3 will ultimately decide the board’s fate.
Another investment firm, Blackwells Capital, supports the company’s current board of directors but is urging shareholders to vote for three nominees to be added to the board.
Disney stock has rebounded from record lows and is up about 11% from a year ago.
The stock has risen about 25% so far in 2024, outpacing the S&P 500’s 6% rise over the same period.