As we get closer to The Walt Disney Company’s annual shareholder meeting on April 3rd, key endorsements continue to come in as Disney shareholders prepare to cast their votes in this high-profile proxy contest against Nelson Peltz. On Monday, proxy advisory firm Glass Lewis urged Disney shareholders to vote in support of all 12 of Disney’s director nominees. The next day, Star Wars filmmaker George Lucas, Disney’s largest individual shareholder, told CNBC that he supports Disney’s Board and management and has voted against Nelson Peltz.
In his statement, Lucas said, “Creating Magic is not for amateurs. When I sold Lucasfilm to Disney, I was delighted to become a Disney shareholder because of my long-time admiration for its iconic brand and for Bob Iger’s leadership. I remain a significant shareholder because I have full faith and confidence in the power of Disney and Bob’s track record of driving long-term value.”
Another well-known Disney shareholder, Laurene Powell Jobs, founder and president of Emerson Collective, showed support for Disney as well, saying, “the company transformed thanks to the steady and visionary leadership of Bob Iger and Disney’s expert Board of Directors.”
On Thursday, ISS recommended that shareholders elect 11 of 12 Disney nominees as well as Nelson Peltz to the Board but urged shareholders to withhold from voting for Jay Rasulo on Peltz’s slate. Disney responded that it is pleased ISS recognized the “positive changes” to the Board and the “relevant experiences and business insights” of Disney’s directors and encouraged shareholders to vote for all 12 of Disney’s director nominees.
Peltz’s Ahab-like quest to get a Disney board seat had Jeff Sonnenfeld, Senior Associate Dean at the Yale School of Management, assess his track record and crown him “America’s most overrated activist investor.” In cases where Peltz or a Trian partner assumed positions on corporate boards, companies associated with Peltz’s fund have underperformed the S&P 500 by -6% annually, on average. Out of the 22 occasions where Peltz or a Trian representative served on a board, 15 instances saw these companies consistently underperforming the S&P 500 throughout Trian's tenure. And don’t forget about that GE white paper calling for the company to add $40 billion in debt for share buybacks—gulp.
Have a great weekend,
GPP Team
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