NEW YORK - Investment firm Trian Fund Management, which holds a significant stake in The Walt Disney Company (NYSE: NYSE:DIS), is advocating for the election of its own nominees to Disney's board of directors at the upcoming annual meeting on April 3, 2024. Trian, which beneficially owns $3.5 billion of Disney stock, has nominated Nelson Peltz and Jay Rasulo, both of whom have invested personally in Disney shares, in a bid to address what it views as the company's recent underperformance and strategic missteps.
In a letter to fellow shareholders, Trian outlined its concerns about Disney's current trajectory, highlighting a decline in key financial metrics over the past five years, including earnings per share and free cash flow. The investment firm pointed to Disney's stock underperforming compared to media peers and the broader market over several time frames, including the past one to five years.
Trian criticized Disney for losing its leading position in the box office, entering the streaming business late, and doubling down on linear TV at an inopportune time. The firm argues that new independent directors with "a shareholder mindset, deep and relevant experience, and a sense of urgency" are needed to revitalize the company.
The nominated candidates, Nelson Peltz, with experience on the boards of multiple public companies, and Jay Rasulo, former Chief Financial Officer of Disney, are proposed to replace two long-serving Disney directors. Trian contends that the current directors have not helped Disney maintain its media leadership or aligned executive pay with performance, and have not facilitated an orderly CEO transition.
Trian's history of recommending and nominating directors is highlighted, emphasizing the positive changes and value creation for shareholders at other companies where its nominees have been appointed to boards. The firm asserts that it is not aiming to disrupt Disney but to help the company improve its financial performance and returns for shareholders.
The letter concludes by urging shareholders to vote for the election of Nelson Peltz and Jay Rasulo and against the reelection of current directors Michael B.G. Froman and Maria Elena Lagomasino, as well as all three Blackwells nominees.
This push for board changes is based on a press release statement by Trian Fund Management.
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