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

[CaptainMickey]

And Peltz is offering what? This shouldn’t be a hard question to answer.

One reason ISS thinks he would make a good addition:

ISS, whose recommendations are influential among institutional investors, cited Disney’s “failed” succession planning in the CEO role in its report backing Peltz, whose Trian Partners. In November 2022, Bob Iger returned as chief executive of the media conglomerate after the ouster of Bob Chapek, formerly head of Disney’s parks division, whom Iger had hand-picked to succeed him in February 2020.

“Dissident nominee Peltz, as a significant shareholder, could be additive to the succession process, providing assurance to other investors that the board is properly engaged this time around,” ISS said in the report Thursday. Peltz, with his “considerable experience on other boards and fiduciary duties owed to a large shareholding group, appears best positioned to bring a shareholder perspective to the board.”

While some investors “have likely drawn comfort from Iger’s return,” ISS said in the report, “given the major missteps and severe consequences of the failed 2020 succession, particularly for a company that already had a history of succession drama, it may be difficult for others to simply trust that the board, albeit refreshed, will get it right this time. These shareholders may be concerned about post-Iger [Disney]. Our analysis favors this latter view.”

 

[Sirwalterraleigh]

I've been told repeatedly that Peltz can't do anything with one seat so what exactly is he going to do?

Seems to me that either investors are the biggest morons to ever walk the face of the planet or a seat on a company’s board is more influential and important than some folks here want to admit.

Well Bob says he’s leaving

So if Bob “changes his mind due to the desperate needs of the company”……then Nelly could raise a stink.

That isn’t such a terrible idea…you know. The future is not Bob.

The boogieman is Nelly selling the tv stations and parks for scrap metal inside of 6 months…that’s not gonna happen.

He will go on squawk and push for dumping bad assets. But let’s face it- espn has been begging for it forever

It’s hard to read what’s gonna happen…’y current thought is he does not get a seat…but the percentage of the vote is much higher than Disney expects and Trian stays in the game/increases their stake

 

[Sirwalterraleigh]

One reason ISS thinks he would make a good addition:

ISS, whose recommendations are influential among institutional investors, cited Disney’s “failed” succession planning in the CEO role in its report backing Peltz, whose Trian Partners. In November 2022, Bob Iger returned as chief executive of the media conglomerate after the ouster of Bob Chapek, formerly head of Disney’s parks division, whom Iger had hand-picked to succeed him in February 2020.

“Dissident nominee Peltz, as a significant shareholder, could be additive to the succession process, providing assurance to other investors that the board is properly engaged this time around,” ISS said in the report Thursday. Peltz, with his “considerable experience on other boards and fiduciary duties owed to a large shareholding group, appears best positioned to bring a shareholder perspective to the board.”

While some investors “have likely drawn comfort from Iger’s return,” ISS said in the report, “given the major missteps and severe consequences of the failed 2020 succession, particularly for a company that already had a history of succession drama, it may be difficult for others to simply trust that the board, albeit refreshed, will get it right this time. These shareholders may be concerned about post-Iger [Disney]. Our analysis favors this latter view.”

It’s all about succession

And that means somebody’s schtick ain’t working

 

[Sirwalterraleigh]

While some investors “have likely drawn comfort from Iger’s return,” ISS said in the report, “given the major missteps and severe consequences of the failed 2020 succession, particularly for a company that already had a history of succession drama, it may be difficult for others to simply trust that the board, albeit refreshed, will get it right this time. These shareholders may be concerned about post-Iger [Disney]. Our analysis favors this latter view.”[/I]

That’s the whole ballgame right there

 

[Sirwalterraleigh]

Yes it is.

It is in a board room with hubris…but not always in more wise ones

 

[Stripes]

The ISS voters will tend to vote later. These have been individual shareholders, not the large institutional ones that follow ISS's lead.

So far, a minority of shareholders have voted. As of Tuesday, just over 22% of shares had been cast, according to people familiar with the matter, the bulk of them held by individual and other smaller investors.

It’s mid-size institutional investors that often follow ISS. The large ones usually make the decision themselves.

Nonetheless, a lot of individual investors blindly follow ISS as well.

 

[SamusAranX]

Wonder if any new MCU release will ever outgross Guardians 3. It was perceived as the end of the ride for a lot of casual fans.

Iger has had a while to pitch a corrective course for his beloved franchises and Disney entertainment in general, but the plan seems to be stay the course with more of the same.

Audiences clearly are responding to new, big PLF theatrical experiences made with a high degree of craft and creative passion. If Iger can’t figure out how to get in on that game with SW, Marvel, and Pixar in-house, what’s that say about his leadership in 2024?

Having to pivot away from their next planned villain arc mid-phase didn’t help

 

[MisterPenguin]

“given the major missteps and severe consequences of the failed 2020 succession, particularly for a company that already had a history of succession drama, it may be difficult for others to simply trust that the board, albeit refreshed, will get it right this time. These shareholders may be concerned about post-Iger [Disney]. Our analysis favors this latter view.”

This has got to be one of the weakest pro-Peltz arguments by saying the board misstepped succession with Chapek.

The board also took decisive actions to rectify that misstep. And they have a new board member in charge of a committee to pick a successor. And they've interviewed four candidates so far and are giving them mentoring sessions to help them understand the segments of TWDC they haven't been a part of.

After all, Iger did leave. It happened. It's not like the board will never let him go, they let him go once already. And are actively seeking a replacement.

And because that hasn't been perfect, Peltz is the answer? What more is he going to do than advocate for a new CEO that thinks like Peltz, namely, sell off what you can and cut expense everywhere (especially the parks) for quickly goosing the profits so as to restore dividends. That's what Peltz brings to repairing succession.

 

[WoundedDreamer]

It’s mid-size institutional investors that often follow ISS. The large ones usually make the decision themselves.

Nonetheless, a lot of individual investors blindly follow ISS as well.

I'd be shocked if many individual shareholders have ever heard of ISS. I think the simplest explanation is voting for Peltz because his name is recognizable in the media. If you're a casual retail investor who owns some Disney stock, you'll recognize Peltz more than Rasulo.

 

[Stripes]

While some investors “have likely drawn comfort from Iger’s return,” ISS said in the report, “given the major missteps and severe consequences of the failed 2020 succession, particularly for a company that already had a history of succession drama, it may be difficult for others to simply trust that the board, albeit refreshed, will get it right this time. These shareholders may be concerned about post-Iger [Disney]. Our analysis favors this latter view.”

And Glass Lewis had this to say:

“…we consider the subsequent 15 months [since Iger’s return] have provided management and an incrementally reconstituted board with adequate opportunity to launch a more credible succession program…”

“…given what we believe is already a credible plan underway for Disney, we struggle to see many of Trian’s intentions as representing a likely net gain for investors.”

“Notwithstanding faults in Disney’s prior succession initiative, Trian’s intent to launch a new process is not clearly superior to, and may be heavily duplicative of, Disney’s ongoing effort, which is already tied to a special board committee composed of members we believe to be credible.”

 

[MisterPenguin]

Peltz withholding his votes for Iger highly suggests ...

...that Perlmutter continues to burn with a vengeful rage hotter than a million suns.

 

[Disstevefan1]

I'd be shocked if many individual shareholders have ever heard of ISS. I think the simplest explanation is voting for Peltz because his name is recognizable in the media. If you're a casual retail investor who owns some Disney stock, you'll recognize Peltz more than Rasulo.

The majority of the stock is institutional owners, right?

 

[Stripes]

I'd be shocked if many individual shareholders have ever heard of ISS. I think the simplest explanation is voting for Peltz because his name is recognizable in the media. If you're a casual retail investor who owns some Disney stock, you'll recognize Peltz more than Rasulo.

Perhaps. Anyway, all we can do is wait till Wednesday.

Or Peltz drops out to save face.

 

[Slpy3270]

This is both unsurprising and probably not going to matter at all.

 

[Disney Analyst]

It’s only 22% of the vote, and someone with an agenda leaked it in a desperate move. They likely know things don’t look good for their campaign, and are trying to scrounge some votes from people who see the article and jump on the bandwagon, or make others feel hopeless and not vote.

It’s fine - wait for the actual results.

 

[Dranth]

It's not a black and white issue. He can have influence, including the ability to call anyone in the company and have their ear, without being able to do things like fire Iger (he doesn't want to anyway), get rid of DEI in films, or, as some would claim, sell the company off for parts. Any of these things would require a majority (at minimum) support of the board, and I have a hard time believing he would be so savvy as to be able to convince six other directors of his position when you consider the animosity they would have towards him.

It's been shown and repeated multiple times how Peltz can mess with things and get his way over the mid/long run. Those not doing everything they can to keep this man away from the board are playing with fire. The risk is not worth the reward as there is ZERO upside. There is not a single thing the man has mentioned or wants to implement that would actually help Disney from a fan’s perspective. Not one solid idea presented. Nothing.

Let's not even get started on some of the defenses people throw out there like Peltz is old and will be gone soon so he can't do much damage while ignoring the SAME EXACT thing can be said for Iger. How about my personal favorite, "it’s just one seat, he can't do anything with that". You have to actively be ignoring history to believe that. Sure, there is a chance Peltz could get on the board and all his efforts amount to nothing but that is not even remotely guaranteed.

Beyond all that, I've yet to see a single cogent thought expressed by anyone here on how Peltz will help things other than it will bruise Iger's ego. Great, what does that accomplish again? The support Peltz has been getting is all being framed by the people offering it as ensuring a succession is done better this time. Go read the ISS statement again, they aren't using it as referendum on Iger's approach to anything else. So, again, what do we gain? What changes?

In the grand scheme of things Iger is gone soon enough no matter what happens with this vote and at that point the board will have to find someone new. I'd like someone, anyone to point out exactly what Nelson Peltz is going to do to pick that person and who he will want? You all ready for Jay? Literally the only person he knows with any experience or are you holding out for a Perlmutter run Disney? Neither of them? Then who? What does he bring to the table?

What this boils down to is that some are relying on a trash tier, corporate raider with a questionable track record. That is the person who is going to save the company for the fans?

 

[Slpy3270]

It’s only 22% of the vote, and someone with an agenda leaked it in a desperate move. They likely know things don’t look good for their campaign, and are trying to scrounge some votes from people who see the article and jump on the bandwagon, or make others feel hopeless and not vote.

It’s fine - wait for the actual results.

The pro-Iger side leaked it, probably?

 

[WoundedDreamer]

This has got to be one of the weakest pro-Peltz arguments by saying the board misstepped succession with Chapek.

The board also took decisive actions to rectify that misstep. And they have a new board member in charge of a committee to pick a successor. And they've interviewed four candidates so far and are giving them mentoring sessions to help them understand the segments of TWDC they haven't been a part of.

They really did fail on this issue. Completely and totally. It's fair for someone to think Peltz is not necessary because the board learned its lesson, but it's also equally reasonable to think that the board is inadequate.

I think one way Disney could have stopped this proxy fight, is by having multiple board members resign in early 2023. They could have said, "the board failed with its succession process, and we are holding ourselves accountable by restructuring the board." Multiple members have been/will be replaced since Chapek's takeover, but the language was never framed in accountability. I think that was a mistake. That way the board could have changed on its own terms, instead of through a proxy fight.

If I was on the succession committee that hired Chapek, re-upped his contract, fired Chapek, and then hired Iger I would resign. I would have demonstrably made a mistake and acted impulsively. The board's glacial restructuring was part of what opened them up to criticism.

 

[WoundedDreamer]

The pro-Iger side leaked it, probably?

I still don't think it makes sense for Iger's camp to do that. Iger's best bet was to seem invincible going into the meeting. Why bother voting against Iger if he's gonna win anyway, right?

Now it feels like there's a chance Peltz could succeed. This doesn't seem to hurt Peltz at all, and might actually help him. If this was a Disney PR tactic, I think it was a dumb one.

 

[lazyboy97o]

One reason ISS thinks he would make a good addition:

ISS, whose recommendations are influential among institutional investors, cited Disney’s “failed” succession planning in the CEO role in its report backing Peltz, whose Trian Partners. In November 2022, Bob Iger returned as chief executive of the media conglomerate after the ouster of Bob Chapek, formerly head of Disney’s parks division, whom Iger had hand-picked to succeed him in February 2020.

“Dissident nominee Peltz, as a significant shareholder, could be additive to the succession process, providing assurance to other investors that the board is properly engaged this time around,” ISS said in the report Thursday. Peltz, with his “considerable experience on other boards and fiduciary duties owed to a large shareholding group, appears best positioned to bring a shareholder perspective to the board.”

While some investors “have likely drawn comfort from Iger’s return,” ISS said in the report, “given the major missteps and severe consequences of the failed 2020 succession, particularly for a company that already had a history of succession drama, it may be difficult for others to simply trust that the board, albeit refreshed, will get it right this time. These shareholders may be concerned about post-Iger [Disney]. Our analysis favors this latter view.”

That doesn’t say anything about movies. Nor does it say anything about what sort leader he would be seeking (and I wouldn’t dare assume the company he keeps is a reflection).