The Walt Disney company logo is displayed on the ground of the Latest York Stock Exchange during morning trading on Dec. 1, 2023.
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Proxy advisory firm Institutional Shareholder Services on Thursday advisable that Walt Disney shareholders elect activist investor Nelson Peltz to the board in his fight against CEO Bob Iger.
Peltz and his firm, Trian Fund Management, have asked investors to nominate him and former Disney Chief Financial Officer Jay Rasulo to the board at its annual general meeting on April 3. Amongst other things, Peltz desires to overhaul Disney’s traditional TV channels, which he claims have been a shrinking business.
“Dissident nominee Peltz, as a major shareholder, may very well be additive to the succession process, providing assurance to other investors that the board is correctly engaged this time around,” the ISS report said.
While siding with Peltz, ISS told shareholders to not back Rasulo within the fight.
“Though we do not need any concerns about his ability to function an objective director, we recognize that Rasulo’s potential presence might create added friction on the board,” ISS said.
The suggestion comes as Disney has lined up a variety of high-profile endorsements, from the heirs of Walt and Roy Disney to JPMorgan Chase CEO Jamie Dimon and top Disney shareholder and filmmaker George Lucas.
One other proxy advisory firm, Glass Lewis, earlier this week endorsed Disney’s slate of board nominees.
This story is developing. Please check back for updates.
