Disney Turns Down Nelson Peltz's Trian Request For Board Representation

(RTTNews) - Trian Fund Management, L.P., which beneficially owns about $3 billion of stock in The Walt Disney Co. (DIS), said that the company turned down its recent request for Board representation, including Nelson Peltz. Trian intends to take its case for change directly to shareholders.

Trian said, "Since we gave Disney the opportunity to prove it could 'right the ship' last February, up to our re-engagement weeks ago, shareholders lost ~$70 billion of value. Disney's share price has underperformed proxy peers and the broader market over every relevant period during the last decade and over the tenure of each incumbent director."

Trian said that James Gorman and Jeremy Darroch represent an improvement from the status quo, but the addition of the directors will not restore investor confidence or address the root cause behind the significant value destruction and missteps that the Disney Board has overseen.

Responding to the statement released by Nelson Peltz, founding partner of Trian, Walt Disney said that it is on track to achieve about $7.5 billion in cost savings - $2 billion more than its original target.

The Media and entertainment giant said that, over the past twelve months, it restructured the company to restore creativity to the center of all its businesses as it significantly reduce costs and drive efficiencies.

Disney noted that it also continues to refresh its Board of Directors, including the appointments of James Gorman, Chairman and Chief Executive Officer of Morgan Stanley, and Jeremy Darroch, a veteran media executive and former Group Chief Executive of Sky, as new directors.

Disney stated that Peltz, in partnership with Isaac Perlmutter, a former Disney executive, intends to take its case to shareholders.

Disney said, "This dynamic is relevant to assessing Mr. Peltz and any other nominees he may put forth as directors, as Mr. Perlmutter was terminated from his employment by Disney earlier this year and has voiced his longstanding personal agenda against Disney's CEO, Robert A. Iger, which may be different than that of all other shareholders."

Disney shareholders are not required to take any action at this time.

Meanwhile, Walt Disney announced a cash dividend of $0.30 per share in respect of the second half of fiscal year 2023, payable January 10, 2024 to shareholders of record at the close of business on December 11, 2023.