A new report from the Wall Street Journal is a gamechanger going into the Wednesday Disney Shareholders Meeting.
The Wall Street Journal is reporting that Nelson Peltz may have a lead in votes as final ballots are turned in from across the spectrum of Disney shareholders. Though exact numbers have not been provided, and the majority of votes may still be outstanding, the idea that Peltz is currently in the lead is a shockwave across the industry.
The WSJ article notes that even more major institutionalist organizations are throwing their support to Peltz in the very late eleventh hour:
“Neuberger Berman supports Trian’s slate, citing the company’s succession woes, as others back CEO Bob Iger and his strategy.” — WSJ
Also according to the same article: “A spokesman for Disney said leaking an early vote count was ‘a highly inappropriate attempt to sway votes.'”
While we cannot possibly state whether or not this leak would benefit Peltz or Disney, it is difficult to suggest that leaking early vote data is in any way appropriate. However, given that the information is now publicly available, it will undoubtedly have some impact on some voters. Will institutionalists now see a green light for voting Peltz? Will smaller, individual shareholders flock to Iger with a desire to cast votes that would have otherwise sat dormant?
One thing is for sure. Most pundits likely thought that Nelson Peltz had a very small, outside chance of getting on The Disney Board of Directors. Now, though Jay Rasulo remains a longshot, Peltz is neck-and-neck. If he does manage to get on the board, the response from Disney CEO Bob Iger — who has fought vigorously to stop Peltz — will be a very interesting thing to see. A much smaller disturbance was sufficient to send Michael Eisner packing once upon a time… and the same extremely influential ISS that helped facilitate that change (which ultimately resulted in Bob Iger ascending to CEO), is the same ISS now recommending against Iger’s desires.
As one might imagine, Disney didn’t agree.
“While we’re heartened to see support for Michael Froman and ISS’s recommendation to withhold on dissident directors Jay Rasulo and the Blackwells’ nominees, we strongly believe that ISS reached the wrong conclusion in its recent report when it comes to adding Nelson Peltz to the board,” said Mark Parker, Chairman of The Walt Disney Company Board of Directors. “In contrast to Glass Lewis, ISS fails to acknowledge the breadth of perspective and expertise Ms. Lagomasino adds to the Board. The strong recent performance and results overseen by the Disney Board demonstrate our focus on long-term shareholder value creation and succession planning and our commitment to good governance practices.”
— The Walt Disney Company
For now, despite Disney’s wishes, history may be repeating itself once more.
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