Disney Beats Activist Investor Nelson Peltz In A Proxy Fight

(CTN News) – There is an end to the highly contested proxy battle that has plagued Disney (DIS) and its CEO Bob Iger for months as activist investor Nelson Peltz fails in his bid to secure board seats at the company.

Disney (DIS) has successfully fended off Peltz’s attempts to secure board seats at the company.

Following a shareholder vote that gave Disney’s slate a substantial margin,

The company announced Wednesday at its annual shareholder meeting that the current board will remain intact.

A source familiar with the situation indicates that approximately 75% of retail shareholders voted for current board.

In the short term, the results represent a victory, as they signal an end to months of uncertainty and distraction for Iger and the company’s management.

Additionally, Disney’s board will be under much greater pressure to deliver results as it navigates the shift of consumers away from traditional cable packages towards mostly unprofitable streaming services.

Disney defeated Peltz and former CFO Jay Rasulo, as well as activist Blackwells Capital, which had called on shareholders to elect its three nominees to the board.

Following the results, Disney’s stock fell more than 3% following the announcement.

As a result of Wednesday’s results, Needham analyst Laura Martin stated that the pressure will remain on Bob Iger until he retires in 2026. “Activists are circling this company and they will only stay away as long as the share price rises.”

Glass Lewis, a well-known proxy firm, provided support for Disney, along with notable individuals such as JPMorgan CEO Jamie Dimon, filmmaker George Lucas, the grandchildren of Walt Disney and his brother Roy, and Laurene Powell Jobs, the widow of former Apple CEO Steve Jobs and a long-time shareholder.

ISS, the nation’s largest public pension fund, as well as notable shareholders such as the California Public Employees’ Retirement System (CalPERS), Neuberger Berman, a global asset manager, and fellow activist Ancora, backed Peltz prior to the vote.

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