As Disney's Board Of Directors Finds A New Chairman, One Activist Investor Is Focused On A Succession Plan For Bob Iger
Image Source: Yahoo
Notably, Disney has revealed that it is facing an egregious battle with activist investor Nelson Peltz and his fund Trian Partners. Trian has nominated Peltz to serve on the board. Susan Arnold will step down from the board as her term limit is about to expire. Nike Executive Chairman Mark Parker will also chair a new committee on the Disney board: a “succession planning” committee dedicated to advising the board on the status of CEO planning so that future leadership does not stale.
In the letter asking shareholders for support, the Disney board also details Iger’s mission during Iger’s tenure. The letter about Iger’s succession plan claims that Iger has taken the necessary steps to realign Disney’s content creation. This would essentially allow Disney’s broadcast services, streaming platforms, and assorted cable networks to give them the profit margins desired. The letter would go on to say, “Mr. Iger’s mandate is to use his two-year term and depth of experience in the industry to adapt the business model for the shifting media landscape, rebalancing investment with revenue opportunity while bringing a renewed focus on the creative talent that has made The Walt Disney company the envy of the industry,”
RELATED:
Image Source: The Edge
Many of Disney’s senior leadership have had numerous engaged with Mr. Peltz and recommends that shareholders not support the company’s nominees.” The Disney board discloses that the company “remains open to constructive engagement and ideas that help drive shareholder value.” However, the company keeps a consistent 15-year board term limit. Peltz’s fund went on to elaborate on its concerns with Disney+. In fact, Peltz’s fund was surprised that Disney’s best-in-class IP, franchises, and scale go toe to toe with Netflix, which does not have a high-quality franchise IP like The Mandalorian or Marvel’s Moon Knight. Netflix reveals its strongest selling point as a creative variety over larger inter-connected franchises.
READ NEXT:
Source: Hollywood Reporter
Latest News
Featured
