Activist Trian Fund Management sent a letter to shareholders on Thursday urging them to elect Nelson Peltz as a director to “restore the magic of Disney” and replace certain directors.
Peltz is a founding partner of Trian, whose investment funds collectively own approximately 9.4 million Disney shares (ticker: DIS), with less than a 1% stake.
In a letter to shareholders on Thursday, Trian asked shareholders to replace current board member Michael Froman with Peltz because the current board “caused Disney’s recent destruction of value.” . Froman is
(MA) Executive and has served on Disney’s Board of Directors since September 2018.
Trian has blamed Disney for a 44% decline in its stock price in 2022, declining earnings since 2018, and a continued suspension of the company’s dividends for 2020 and beyond.
“Shareholders need a board of directors who are sufficiently experienced, sufficiently committed, and objective to make the case that Disney can reach its full potential,” the letter said. .
In a filing with the Securities and Exchange Commission, Mr. Froman said Mr. Froman had “never served on the board of public companies outside of Disney and has served on the board’s governance and nominating committees.” It is written that Trian Group believes he has overseen the company’s weak corporate governance. ”
Disney did not immediately respond to a request for comment. However, in an SEC filing dated Jan. 17, Disney said: Trian announced on January 11 that he would nominate Peltz to Disney’s board of directors.
Disney shares rose 1.2% to $110.74 on Thursday. The entertainment giant plans to report earnings on Feb. 8 after the market closes.
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