News The Walt Disney Company Board of Directors Extends Robert A. Iger’s Contract as CEO Through 2026

[WoundedDreamer]

And so it concludes. Getting 2/3 of the big investors was absolutely essential. And Iger's team has done it. State Street will probably follow the consensus opinion now.

This was a brutal fight. I'm mightily impressed by Peltz's performance. I think there's strong reason to believe that Peltz will surpass 30% of the vote. That's my current floor. But in order to cinch the win, the big players needed to cross over to his side. And ultimately, for Trian, it was the win that will make the difference.

Will he try again next year? Maybe... But Trian doesn't have unlimited resources to fight forever. They may move to greener pastures. Ultimately, these decisions came down to relationships. Iger knows how to curate relationships in Hollywood and Wall Street. When push came to shove, relationships made the difference. State Street and Blackrock are made up of people who can be lobbied. My father and brother both work on Wall Street, and relationships are incredibly important. Arguments are not enough to win. It's about who you know and how well they like you.

Peltz's raiding days might be over. But this was quite a fight!

 

[BrianLo]

Look, son! An idiot!

I agree, regardless of the leak, we have fairly official affirmation from 7/13 institutions and individuals who own >1% of the stock affirming Disney support.

We have two for Peltz and those were declared last year - Perlmutter and Trian.

It’s not going to be close.

 

[BrianLo]

For the current Board:

• (#1) Vanguard: 8.3%
• (#2) BlackRock: 6.7% of outstanding shares
• (#9) Norges Bank Investment Management: 1.2%
• T. Rowe Price: 0.5%
• ValueAct: ?
• NYC Retirement Systems: 0.14%

Total: 16.84%​

​

Advisory:​

• Glass & Lewis (shareholder advisor)
• ValueAct

In Support (and maybe with more shares...)​

• JPMorgan Chase CEO Jamie Dimon:
• Laurene Powell Jobs (billionaire)
• Lucas, Eisner, and Disney family

Undeclared

• (#3) State Street: 4.13%
• (#4) Geode Capital Management: 1.89%
• (#6) State Farm Mutual Automobile Insurance Co: 1.75%
• (#7) Morgan Stanley: 1.28%
• (#8) Northern Trust Corporation: 1.22%
• Bank Of New York Mellon Corporation: 1.09%
• Blackwell, who has their own 3 person slate, will not vote for Peltz. That's shares withheld from his side.

For Peltz:

• (#5) Trian - Peltz 1.8%
• Neuberger Berman: 0.8%
• Yacktman Assets Managment 0.02
• California Public Employees’ Retirement System: 0.2%
• Ancora Holdings ?

Total: 2.82%​

​

Advisory:​

• Institutional Shareholder Services (ISS)
• Egan Jones

Support:​

• Former directors of Mondelez International, Procter & Gamlbe, Janus Henderson Group

​

I went down this rabbit hole yesterday, but Morgan Stanley has 2.6 percent of shares. It seems Lucas holds 4% and Laurene slightly under around 3.5% now.

The Disney family are down in the 1’s maybe and Eisner is a small stakeholder at 0.17%

 

[Slpy3270]

I agree, regardless of the leak, we have fairly official affirmation from 7/13 institutions and individuals who own >1% of the stock affirming Disney support.

We have two for Peltz and those were declared last year - Perlmutter and Trian.

It’s not going to be close.

The vote could change if a whole bunch of smaller institutional shareholders swing their votes to Peltz to overwhelm the Top 5 shareholders.

I'm skeptical of that, though.

And it wouldn't surprise if it actually is close, because it seems Peltz is doing better with individuals at the moment (based on that early 22% vote leak WSJ had last week).

 

[WoundedDreamer]

Look, son! An idiot!

I think one point that undercuts his argument is the fact that shareholder tallies were somehow leaked before while Trian was ahead. By who, I have no idea. Trian wouldn't have access to that information... Was it a member of Disney's legal team that leaked it? Or maybe a contractor that is handling the voting? Or a disgruntled Disney employee? No clue, but again it wouldn't have been Trian.

But was this more recent leak Disney PR? Yeah, I could believe it. Generally, I do find his post compelling. But that problem is significant.

 

[Sirwalterraleigh]

You know…for weeks the same drumbeat has been to “what does Peltz know about parks/entertainment/content?!?” As it was being portrayed as a disqualifier.

Maybe.

But does anyone know who’s currently on the board? Like bothered to check? When it’s been awhile I forgot how useless their backgrounds are…then I look again and it’s shocking.

Yeah…ready for this all to be over…all the mice are blind

 

[Sirwalterraleigh]

I went down this rabbit hole yesterday, but Morgan Stanley has 2.6 percent of shares. It seems Lucas holds 4% and Laurene slightly under around 3.5% now.

The Disney family are down in the 1’s maybe and Eisner is a small stakeholder at 0.17%

So now we’re only about 55% short of the pie?

Wow…George got a good deal. All that cash and they managed to restore his rep without him lifting a finger

 

[MisterPenguin]

I went down this rabbit hole yesterday, but Morgan Stanley has 2.6 percent of shares. It seems Lucas holds 4% and Laurene slightly under around 3.5% now.

The Disney family are down in the 1’s maybe and Eisner is a small stakeholder at 0.17%

Thanks! Updated...



For the current Board:

• (#1) Vanguard: 8.3%
• (#2) BlackRock: 6.7% of outstanding shares
• Lucas: 4%
• Laurene: 3.5%
• Morgan Stanley: 2.6%
• (#9) Norges Bank Investment Management: 1.2%
• Disney Family & Eisner: ~1.5%
• T. Rowe Price: 0.5%
• ValueAct: .2
• NYC Retirement Systems: 0.14%

Total: 26.64%​

Advisory:

• Glass & Lewis (shareholder advisor)
• ValueAct

Undeclared

• (#3) State Street: 4.13%
• (#4) Geode Capital Management: 1.89%
• (#6) State Farm Mutual Automobile Insurance Co: 1.75%
• (#7) Morgan Stanley: 1.28%
• (#8) Northern Trust Corporation: 1.22%
• Bank Of New York Mellon Corporation: 1.09%
• Blackwell, who has their own 3 person slate, will not vote for Peltz. That's shares withheld from his side.

For Peltz:

• (#5) Trian - Peltz 1.8%
• Neuberger Berman: 0.8%
• Yacktman Assets Managment 0.02
• California Public Employees’ Retirement System: 0.2%
• Ancora Holdings ?

Total: 2.82%​

Advisory:

• Institutional Shareholder Services (ISS)
• Egan Jones

Support:

• Former directors of Mondelez International, Procter & Gamlbe, Janus Henderson Group

 

[WoundedDreamer]

You know…for weeks the same drumbeat has been to “what does Peltz know about parks/entertainment/content?!?” As it was being portrayed as a disqualifier.

Maybe.

But has anyone know who’s currently on the board? Like bothered to check? When it’s been awhile I forgot how useless their backgrounds are…then I look again and it’s shocking.

Yeah…ready for this all to be over…all the mice are blind

This was exactly how the last board hired Chapek and then panicked. They did almost no due diligence. Moreover, their board meetings were "highly scripted" according to CNBC. There is not a remotely hostile board member on the board. Apparently they've made changes since then, but I find it dubious. I do like these last two board member picks better than some, though what some Morgan Stanley guy has to do with theme parks is beyond me.

Posters here have said or implied they don't want the board to hold the executive team accountable. They want Iger to do his thing with as little interference as possible. Which, fair enough I guess. But I still believe that Iger's personality and decisions have led Disney to this point. If the disease is Iger, then he's going to continue causing problems unabated.

 

[Stripes]

This was exactly how the last board hired Chapek and then panicked. They did almost no due diligence. Moreover, their board meetings were "highly scripted" according to CNBC. There is not a remotely hostile board member on the board. Apparently they've made changes since then, but I find it dubious. I do like these last two board member picks better than some, though what some Morgan Stanley guy has to do with theme parks is beyond me.

James Gorman facilitated a seamless CEO transition at Morgan Stanley. And is currently on Disney’s 4 person succession committee. He is one of the best people to be sitting on the board right now, assisting with the succession process. That committee is scheduled to meet 9 more times this year to talk about and interview candidates. Iger is mentoring the 4 leading candidates himself.

The Chapek debacle was a failure. They are clearly handling things much better this time.

 

[Casper Gutman]

Yeah. I wouldn't be surprised if Peltz got at least a third of the vote. The board's gotta do some serious self-reflection after tomorrow.

All they need to do is sit down and solve the problem of the death of linear TV, Wall Street’s fanatical obsession with and then fear of streaming, changed and chaotic theater-going habits from a public rocked by a pandemic and new media forms, and a relentless effort to destroy the company by some of the most powerful people in the world - all problems to which no entertainment company, Wall Street power player, or poster here has even begun to suggest a viable solution.

WHY HAVEN’T THEY ALREADY DONE THIS?

 

[BrianLo]

The vote could change if a whole bunch of smaller institutional shareholders swing their votes to Peltz to overwhelm the Top 5 shareholders.

I'm skeptical of that, though.

And it wouldn't surprise if it actually is close, because it seems Peltz is doing better with individuals at the moment (based on that early 22% vote leak WSJ had last week).

Ya I’m still a bit dubious about that one and my personal theory is it was pretty much the vast majority of their voting block, including themselves, who voted early.

I absolutely cannot predict individual shareholders - but I just don’t think this narrative has been as strong as the Eisner take for mass amounts of groundswell in the retail investors. Employees and ‘Roy Disney’ aren’t pushing sentiment this time. But like all things I’m eager to see tomorrow!

 

[WoundedDreamer]

James Gorman facilitated a seamless CEO transition at Morgan Stanley. And is currently on Disney’s 4 person succession committee. He is one of the best people to be sitting on the board right now, assisting with the succession process. That committee is scheduled to meet 9 more times this year to talk about and interview candidates. Iger is mentoring the 4 leading candidates himself.

The Chapek debacle was a failure. They are clearly handling things much better this time.

How would a banking CEO know what makes a good candidate for the CEO of a movie and theme park company? If Wall Street guys are capable of picking candidates for succession, then why was Peltz's lack of media experience disqualifying?

And I heard all the same sorts of talking points all through the 2010s about Iger's succession process. I'll believe it when I see it.

 

[BrianLo]

Thanks! Updated...



For the current Board:

• (#1) Vanguard: 8.3%
• (#2) BlackRock: 6.7% of outstanding shares
• Lucas: 4%
• Laurene: 3.5%
• Morgan Stanley: 2.6%
• (#9) Norges Bank Investment Management: 1.2%
• Disney Family & Eisner: ~1.5%
• T. Rowe Price: 0.5%
• ValueAct: ?
• NYC Retirement Systems: 0.14%

Total: 26.44%​

Advisory:

• Glass & Lewis (shareholder advisor)
• ValueAct

Undeclared

• (#3) State Street: 4.13%
• (#4) Geode Capital Management: 1.89%
• (#6) State Farm Mutual Automobile Insurance Co: 1.75%
• (#7) Morgan Stanley: 1.28%
• (#8) Northern Trust Corporation: 1.22%
• Bank Of New York Mellon Corporation: 1.09%
• Blackwell, who has their own 3 person slate, will not vote for Peltz. That's shares withheld from his side.

For Peltz:

• (#5) Trian - Peltz 1.8%
• Neuberger Berman: 0.8%
• Yacktman Assets Managment 0.02
• California Public Employees’ Retirement System: 0.2%
• Ancora Holdings ?

Total: 2.82%​

Advisory:

• Institutional Shareholder Services (ISS)
• Egan Jones

Support:

• Former directors of Mondelez International, Procter & Gamlbe, Janus Henderson Group

No problem. And value act is 0.2%

 

[Stripes]

If Wall Street guys are capable of picking candidates for succession, then why was Peltz's lack of media experience disqualifying?

Peltz’s lack of media experience was never disqualifying. And you won’t find any posts from me even criticizing his lack of media experience.

 

[WoundedDreamer]

Peltz’s lack of media experience was never disqualifying. And you won’t find any posts from me even criticizing his lack of media experience.

That's a fair point. Sorry, I should have differentiated between you and Disney's opinion (which I was arguing against). Just because you were against Peltz, doesn't mean you agree with every point argued by Disney. You can agree with certain elements of Disney's points, but not all. I don't want to make you responsible for defending everything that Disney's PR team has written over the last 6 months.

Basically, Disney argued that because Peltz lacked media experience, he was a poor fit for the board. That I don't be find to be a compelling argument.

 

[Stripes]

That's a fair point. Sorry, I should have differentiated between you and Disney's opinion (which I was arguing against). Just because you were against Peltz, doesn't mean you agree with every point argued by Disney. You can agree with certain elements of Disney's points, but not all. I don't want to make you responsible for defending everything that Disney's PR team has written over the last 6 months.

Basically, Disney argued that because Peltz lacked media experience, he was a poor fit for the board. That I don't be find to be a compelling argument.

It wasn’t a compelling argument and the board knows it. But when you’re in a proxy fight, you don’t hold anything back.

That said, Peltz’s background is primarily in consumer products. And we all know the reputation of consumer products people at Disney. Chapek, Pressler, etc.

 

[BrianLo]

Peltz’s lack of media experience was never disqualifying. And you won’t find any posts from me even criticizing his lack of media experience.

What was disqualifying truly was the two people he picked to advise him on media and parks.

 

[Sirwalterraleigh]

For the record, I've never seen @Sirwalterraleigh suggest that this particular fight was going to result in Iger's imminent ouster. Maybe someone else did, and you're confusing them with another poster.

What they have argued, is that Peltz would have been someone on the board to keep Iger accountable on his way out in 2026.

Indeed

That was the gist: firm exit date

Now…was it possible he’d get mad or the board would take additional steps to “ensure that”?

Sure…an independent successor and transition wasn’t pie in the sky

 

[Sirwalterraleigh]

What was disqualifying truly was the two people he picked to advise him on media and parks.

As opposed to the dude from CVS and the head of “we, family offices”?

Look that one up…it’s a doozy