Walt Disney Company calls for shareholder support in upcoming board election

19 days ago in "The Walt Disney Company"

Posted: Thursday February 1, 2024 5:37pm Et by WDWMAGIC Staff

The Walt Disney Company has urged its shareholders to vote for its 12 board nominees at the upcoming Annual Meeting on April 3, 2024, and to ignore the nominees from the Trian Group and Blackwells.

In a letter to shareholders sent today, Disney emphasized its strategy, focusing on brand assets, cost reduction, and dividend reinstatement while enhancing streaming services, film studios, ESPN, and Disney's Experiences business.

Referring to the non-Disney nominees, the company said, "Your Board does not endorse either of the Trian Group's nominees (Nelson Peltz and Jay Rasulo) or any of Blackwells' nominees (Craig Hatkoff, Jessica Schell and Leah Solivan). We believe that the election of any of these individuals would impede leadership's ongoing execution of Disney's strategic realignment and the Board's efforts to create value for shareholders."

The letter then goes on to say that Mr. Peltz brings no media experience and has presented no strategic ideas for Disney, while Mr. Rasulo's perspective is stale, given he left Disney in 2015 and has not held any executive positions in the industry since.

The Trian Group, which owns more than $3 billion of shares of The Walt Disney Company, is urging Disney shareholders to withhold votes for board members, Mr. Froman and Ms. Lagomasino. They argue that Froman's experience outside of Disney, mainly in government and finance, is largely irrelevant to the company's business, and he possesses only one skill central to Disney's strategy. Similarly, they contend that Lagomasino's background in wealth management is unrelated to Disney's core business. Trian also criticizes Lagomasino for misaligned compensation practices, including a significant package for Mr. Iger and a 2023 compensation program they believe does not align with Disney's performance. Furthermore, both nominees are part of the Governance and Nominating Committee, which Trian accuses of poor corporate governance and succession issues.

You can read the full letter to Disney shareholders here.

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lazyboy97o11 days ago

As of now, Universal remains committed to something new every year. It will just now be split between three parks in Orlando instead of two.

Casper Gutman11 days ago

Historically, it’s precisely when you’re building a new park that you want to build in your existing parks to ensure crowds are spread out. This has been true of Disney and Universal.

Indy_UK11 days ago

They have more parks outside of Orlando though. They are building 2 mini parks in the country and are probably going ahead with the UK Universal Studios. They are set on big worldwide expansion

Dranth11 days ago

I get that people are excited for the new park but as of today, what new attractions? USF has 14 attractions currently listed and only 4 of those opened post Diagon Alley which is now turning 10. So, in a decade Comcast replaced Disaster with Fast and Furious, Twister with Jimmy Fallon, Terminator with Bourne, and Sherk with the new Minion shooter. Over in IoA they have 19 attractions currently listed and managed two new capacity rides in VelociCoaster and Kong in that same time period. They also have one replacement with Hagrid's taking over for Dragon Challenge. Yes, they are building a new park which is great and I am excited for it but anyone who thinks Uni isn't going to sit on their backside after this round of expansion, just like they did last time, is wrong exactly because they can't do everything at once and they face the same problems as Disney in a lot of ways. They own a streaming service that lost just under a billion last quarter, a dying cable business, an aging broadcast company that also has to suck it up and pay for sporting rights to have any relevance and on top of all that, twice the debt load. After EU I expect we will see some USF updates as it desperately needs something as terrible as it is right now and then Comcast cuts the capital investment hose off for a while.

flynnibus11 days ago

Dude this is the worst kind of cherry picking... literally the company is finishing out the largest theme park opening in the country in decades... and has a second regional theme park already announced... after opening major additions in both the west coast and international parks with new theme park brands. And you're harping on stuff like the idled Fear Factor theatre?? come on...

Lilofan11 days ago

Adding more to the $100B current debt when Comcast opens up Epic Universe. It is good question for Brian Roberts. Most probably don't have a clue who he is but many know who Iger is.

LSLS11 days ago

I mean, you make the case for not having a lot of faith, but not for having less faith in them than Disney. Multiple WDW parks have less attractions now than they did 15 years ago if memory serves me correctly, and have needed capacity since creation decades ago.

JD8011 days ago

Don't we complain about Disney debt ($50B) but we forget that Comcast is at like $100B? Maybe Uni can get some more rides where you stand on a conveyor belt and they hand you a gun.

Jrb197911 days ago

Your answer they should be doing everything all at once. I understand they can't do that, I won't be complaining about filling out each park "RIGHT ******* NOW. I am happy to have new attractions at the parks. Something your hero Sweater Bob doesn't do

MisterPenguin11 days ago

So... once EU is finished next year, then USO can focus on taking care of all those underused spaces in the other two parks. And while they're doing that, you and others may be itching for EU to fill out it's future-expansion pads. And Universal's response to that might be: "We're working on completing our uncompleted other parks. Maybe you've heard of them?" So, EU's expansion pad will lay dormant for about another 5 years. But good thing you have 'faith in them.'

Jrb197911 days ago

Right now they are but that's due to working on another park at the moment. Maybe you heard of it? What outside of Tiana, Test Track update and Bears does Disney have? A promise of $60 billion.

MisterPenguin11 days ago

Despite the pads and empty attractions in USO lying dormant?

MisterPenguin11 days ago

lazyboy97o11 days ago

The freaking Yoshi ride has a 36” height requirement.