Billionaire investor Nelson Peltz recently voiced concerns about what he perceives as excessive “woke” messaging in Disney projects, such as its Marvel and Star Wars releases. Despite some backlash right after, he may just get seats at the Disney Board with recent influential support.
Peltz’s Trian Fund Management holds approximately $3 billion worth of Disney (DIS) stock. However, he does not currently hold a seat on the Disney Board. Given the recent failures that tarnished brands and franchises under Marvel Studios and Lucasfilm, the Trian executive’s campaign may be a foregone conclusion.
In an interview with the billionaire investor, Peltz argued with a massive generalization that audiences primarily seek entertainment rather than overt social messaging when they watch movies or TV shows. “People go to watch a movie or a show to be entertained,” Peltz stated. “They don’t go to get a message.”
'Ben & Jerry’s job is to sell ice cream, not to make political statements.'
The billionaire on his fight to fix Disney, keeping politics out of the boardroom, and why he is backing Trump again – over Lunch with the FT: https://t.co/TIynStIcvP
— Financial Times (@FT) March 23, 2024
Specifically, Peltz expressed reservations about recent Disney films such as The Marvels and Black Panther, which he believes prioritize diversity, equity, and inclusion at the expense of broader appeal. Criticizing the focus on all-female and all-Black casts, Peltz questioned why these distinctions were necessary – unsurprising if one is aware of his political leanings.
“Why do I have to have a Marvel that’s all women?” he queried. “Not that I have anything against women, but why do I have to do that? Why can’t I have Marvels that are both? Why do I need an all-Black cast?”
Peltz’s commentary regarding the supposed “wokeness” prevalent in the Disney productions has triggered backlash from fans who support these initiatives. Peltz’s comments follow Disney CEO Bob Iger’s acknowledgment during an earnings call that Marvel’s film studio had lost focus by prioritizing quantity over quality in recent releases – the relation between these considerations is highly debated.
Peltz has been engaged in a proxy battle for a seat on Disney’s board of directors for over a year. Trian Fund Management initially announced Peltz’s candidacy in January of the previous year, citing concerns about Disney’s operational performance and governance.
Despite Disney’s opposition, Peltz persisted, seeking to address what Trian perceives as Disney’s self-inflicted problems, including declining earnings per share and operational inefficiencies. Unsurprisingly, the billion dollar trust fund doesn’t much care about issues like the rampant mistreatment of workers.
Trian’s objectives include crafting an effective succession plan, aligning compensation with performance (we wonder where multi-million bonuses for executives fall), improving direct-to-consumer margins, reducing redundant costs, and reinstating dividends by fiscal year 2025.
In pursuit of these goals, Trian increased its stake in Disney through a voting rights agreement with Marvel Chair Ike Perlmutter, acquiring a total of 33 million shares valued at $3 billion. If nothing else, its clear their intents are serious.
In an attempt to reshape Disney’s board, Peltz requested three seats and nominated himself along with former Disney CFO Jay Rasulo. However, Disney rejected these nominations, prompting Trian to mobilize a campaign called Restore the Magic, which criticizes Disney’s board for lacking focus, alignment, and accountability.
As part of this campaign, Trian launched a website dedicated to convincing Disney shareholders that Peltz and Rasulo have the company’s long-term goals in mind. As stated on the website, goals include achieving Netflix-like margins for the Disney+ streaming service, “reclaim the #1 box office position”, and increasing the income growth of Disney’s parks and experiences lines of business.
Contrary to speculation, Peltz clarified that he does not seek to oust Disney’s CEO Bob Iger, but rather aims to collaborate with him to address the company’s challenges. “Disney is stupid because I’m not trying to fire [chief executive] Bob Iger, I want to help him,” Peltz asserted. “We don’t fire CEOs.”
While Peltz’s comments have received negative feedback on social media, the billionaire investor has gained influential support. The Institutional Shareholder Services (ISS) and advisory firm Egan-Jones both recommend for the shareholders to vote to give Nelson Peltz the requested seats in the Disney Board.
The proxy battle is set to culminate on April 3 during Disney’s annual shareholder meeting, where investors will vote on board appointments. In light of these developments, shareholders and fans of all things Disney alike may wonder about the future direction of the company.
The outcome of the shareholder vote may shape Disney’s path forward and its approach to storytelling and corporate governance. Will Peltz’s proposed changes enhance Disney’s overall performance, or will the company maintain its current trajectory of failed projects?
