Egan-Jones, an independent proxy advisory firm, has recommended that Disney shareholders vote for Nelson Peltz and Jay Rasulo, the nominees put forth by Trian Group, to join the Disney board.
What’s Happening:
- Egan-Jones recommends that Disney shareholders vote “FOR” both of Trian’s nominees, Nelson Peltz and Jay Rasulo, and “WITHHOLD” on Maria Elena Lagomasino and Michael B.G. Froman in connection with Disney’s annual meeting on April 3rd, 2024.
- Egan-Jones concluded: “We see very little downside and a lot of upsides in putting the Trian Nominees on the Board.” Among the reasons Egan-Jones cited for the need for change at Disney were:
- “The apparent lack of a … long-term succession plan.”
- “A Board that appears cutoff and unwilling to engage with investors and the broader market.”
- “A business model, we believe to be built for the last decade, but not forward looking and flexible enough to ensure success in the next.”
- “A desire to protect the status quo for as long as possible and at all costs.”
- “Mediocre financial performance and the resultant lower valuation.”
- In a statement released earlier this week, Trian Group reaffirmed its call for change in the composition of Disney’s Board of Directors and the commitment of its nominees, Nelson Peltz and Jay Rasulo, to work constructively with the Company’s Board and leadership team to drive long-term, sustainable value creation.
- Meanwhile, former Disney CEO Michael Eisner shared his thoughts on the ongoing proxy battle at The Walt Disney Company, backing Bob Iger and the Disney Board.
- Disney’s Annual Meeting of Shareholders, which is when the vote will end, is set for April 3rd.