Walt Disney said Tuesday it “doesn’t endorse” the candidates nominated by activist shareholders in a preliminary proxy filed with the Securities and Exchange Commission.
Disney Chief Executive Bob Iger, in a letter to investors, said the corporate has launched into an “unprecedented transformation,” making management changes and streamlining operations to grow to be more cost-efficient.
It’s on course to achieve roughly $7.5 billion in cost reductions – about $2 billion greater than it originally targeted.
Iger said Disney has prioritized making its streaming business profitable, turning ESPN, its sports media brand, into the “preeminent” digital platform, improving the output and economics of its film studios, while “turbocharging” the expansion at its theme parks.
“We’ve got already made considerable progress on all 4 of those opportunities, and we’re continuing to move forward with urgency and clarity,” Iger wrote, urging shareholders to support Disney’s 12 nominees – and rejecting those candidates recommend by investor groups Trian and Blackwells.
Activist investor Trian Fund Management said in December they nominated two independent director candidates for Disney’s board – its chief executive, Nelson Peltz, and former Disney Chief Financial Officer Jay Rasulo.
Blackwells Capital put forth a trio of nominees as alternatives to investors who need a fresh perspective on Disney’s board.
Earlier this month, Disney’s board voted to reject Trian’s nominees and Blackwells’ nominees. The administrators said Nelson Peltz “had not actually presented a single strategic idea for Disney,” and that his experience was not within the media or technology sector.
Peltz’s relationship with Ike Perlmutter, the previous chairman of Marvel Entertainment who has a fancy history with Disney, “created significant concern” for the administrators.
Perlmutter was forced out of the corporate last March as a part of the corporate’s cost-cutting campaign.
Disney’s board didn’t endorse former Disney Chief Financial Officer Rasulo because he lacked executive experience at other public corporations.
The corporate also said his tenure as a director at iHeartMedia didn’t lead to strong returns and that his relationship with Perlmutter also raised concerns.