Unsure who to vote for regarding the Walt Disney Co. Board

[Andrew C]

Iger will win. Everything at TWDC will continue as it has been done since Iger returned.

Likely.

 

[mikejs78]

When even Abigail is on Iger's side, you know to not listen to the burn it down folks on these boards.



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Abigail Disney, who is no friend of Iger's, had this to say to the NYT:

I have my differences with Bob Iger, but I know for a fact that the worst thing that could happen to the company is Nelson Peltz.

Source (paywalled): Disney Heirs Line Up Against Activist Investors https://www.nytimes.com/2024/02/29/...-nelson-peltz.html?smid=nytcore-android-share

 

[Indy_UK]

WOW those letters will give Iger an ego boost.

Just waiting for a contract extension past 2026 to be announced any day now

 

[Tha Realest]

I’m sure the stone cold capitalists at all those brokerage firms are simpatico with Abigail Disney’s views on corporate governance and profitability.

 

[mikejs78]

I’m sure the stone cold capitalists at all those brokerage firms are simpatico with Abigail Disney’s views on corporate governance and profitability.

Maybe not her specifically, but the fact that all the Disney grandchildren are speaking out is significant. Every other "takeover" event in Disney history had the backing of members of the Disney family. This one doesn't. That should tell you something. As many have said, Iger is no saint. But Peltz would be far, far worse for the future of the Walt Disney company. Iger, in this case, is the lesser of two evils, and by a pretty significant amount.

 

[Tha Realest]

Maybe not her specifically, but the fact that all the Disney grandchildren are speaking out is significant. Every other "takeover" event in Disney history had the backing of members of the Disney family. This one doesn't. That should tell you something. As many have said, Iger is no saint. But Peltz would be far, far worse for the future of the Walt Disney company. Iger, in this case, is the lesser of two evils, and by a pretty significant amount.

Roy Disney was far more active with the company, held various roles as an executive and on the board of directors, and owned a major stake in the company.

These other Disneys hold a fraction of what Roy did, and have made comparatively negligible positive contributions to the company over time.

 

[SplashJacket]

It is interesting how much y’all want Iger gone when the head of Comcast came from JP Morgan Chase.

I don’t really understand who y’all think heads Fortune 500 companies (hint: it’s financial jocks, not creatives), so Iger is far towards the better end of the possible people for the position.

 

[Casper Gutman]

I once again encourage folks to look at WHO is advocating for Trian, here and elsewhere, and HOW they are doing that. Note their complete unwillingness to defend the history of Trian or the specific proposals offered by Trian or Blackwell.

From top to bottom, this effort is fueled by revenge - some who want to hurt Iger because their rage about the parks has blinded them, some because they want to hurt Disney for much more nefarious reasons.

 

[willtravel]

I once again encourage folks to look at WHO is advocating for Trian, here and elsewhere, and HOW they are doing that. Note their complete unwillingness to defend the history of Trian or the specific proposals offered by Trian or Blackwell.

From top to bottom, this effort is fueled by revenge - some who want to hurt Iger because their rage about the parks has blinded them, some because they want to hurt Disney for much more nefarious reasons.

Could explain what you mean "rage about the parks"?

 

[Casper Gutman]

Could explain what you mean "rage about the parks"?

Anger at the direction of the Disney World parks over Iger’s tenure. I share much of this anger, but it can’t drive us to give power to individuals who are much, much worse.

 

[larryz]

It's simple, really.

You pick the prospective BOARD members whose PLANKS most match your own philosophy, then you WHITTLE down the candidates until you can PEG the one you want to vote for.

I recommend Roddy McDOWELL.

 

[JoeCamel]

It's simple, really.

You pick the prospective BOARD members whose PLANKS most match your own philosophy, then you WHITTLE down the candidates until you can PEG the one you want to vote for.

I recommend Roddy McDOWELL.

I'll go out on a limb here and ask if you wood be OK?

 

[WoundedDreamer]

Abigail Disney, who is no friend of Iger's, had this to say to the NYT:



Source (paywalled): Disney Heirs Line Up Against Activist Investors https://www.nytimes.com/2024/02/29/...-nelson-peltz.html?smid=nytcore-android-share

This seems to have been coordinated by Disney's communication teams. There's one of two reasons why Iger and his executive team have been so aggressive:

1) There's actually a chance of Trian getting on the board.
2) They want the vote to be so overwhelming and devastating that Trian never tries again.

I lean towards the second option. The video with Iger, the Professor video, the webpage, and now this seem like they're going scorched Earth. They're trying to break Peltz's desire to continue his campaign. Ultimately, the fate of Disney rests in the hands of large institutional investors. I'd assume most would side with Iger.

But... It's hard not to get a sense of concern from all these moves. Are large voting blocks of shares really up for grabs? I'll admit the reason option 2) doesn't make sense is from Peltz's perspective. Is he really spending his time and money on a campaign that has no chance of success? He doesn't always succeed, but he usually doesn't pick fights that aren't at all winnable. He must have managed to get some voting block beyond his 10%.

A more innocent way to approach this is from Iger's history. He was there during the Save Disney Campaign that devastated Eisner. Maybe he's just a little paranoid about the potential for things to spin out of control. It's better to produce a short video and get endorsements than get to the Shareholder meeting and be blindsided by a strong opposition. It's actually smart strategy. Never underestimate your opponent.

This is going to be fascinating anyway things play out. Is Peltz going to get beat 85% to 15%? Is he going to get 30% or 40%? I have no clue. It's all up in the air.

 

[JoeCamel]

This seems to have been coordinated by Disney's communication teams. There's one of two reasons why Iger and his executive team have been so aggressive:

1) There's actually a chance of Trian getting on the board.
2) They want the vote to be so overwhelming and devastating that Trian never tries again.

I lean towards the second option. The video with Iger, the Professor video, the webpage, and now this seem like they're going scorched Earth. They're trying to break Peltz's desire to continue his campaign. Ultimately, the fate of Disney rests in the hands of large institutional investors. I'd assume most would side with Iger.

But... It's hard not to get a sense of concern from all these moves. Are large voting blocks of shares really up for grabs? I'll admit the reason option 2) doesn't make sense is from Peltz's perspective. Is he really spending his time and money on a campaign that has no chance of success? He doesn't always succeed, but he usually doesn't pick fights that aren't at all winnable. He must have managed to get some voting block beyond his 10%.

A more innocent way to approach this is from Iger's history. He was there during the Save Disney Campaign that devastated Eisner. Maybe he's just a little paranoid about the potential for things to spin out of control. It's better to produce a short video and get endorsements than get to the Shareholder meeting and be blindsided by a strong opposition. It's actually smart strategy. Never underestimate your opponent.

This is going to be fascinating anyway things play out. Is Peltz going to get beat 85% to 15%? Is he going to get 30% or 40%? I have no clue. It's all up in the air.

Its amazing Abigail would back iger like this, Bob must have been charming.

Pretty sure Peltz is an up or down vote and percentages don't enter into it.

 

[durangojim]

I haven’t read through all the pages of this thread that I started but could there be a concern from Iger that given this hyper-political world he’s concerned that there are enough right wing leaning shareholders who may vote against Iger just out of spite?

 

[MisterPenguin]

I haven’t read through all the pages of this thread that I started but could there be a concern from Iger that given this hyper-political world he’s concerned that there are enough right wing leaning shareholders who may vote against Iger just out of spite?

Most shares are in giant mutual funds. And they've been leaning progressive lately in choosing stocks that are ecologically conscious, e.g.

The latest salvo from Disney is to assure these holding companies that their stock will bear fruit by touting they're on track for...

• future big profits again after having to account for the pandemic and buying out Hulu
• weathering the Great Cord Cutting
• dividends
• stocks regaining value (through stock buy-backs)

That's what the cold monetary evaluation cares about.

Those opposed to Disney for perceived ideological opposition are the type who dumped their Disney stocks long ago.

 

[WoundedDreamer]

Its amazing Abigail would back iger like this, Bob must have been charming.

Pretty sure Peltz is an up or down vote and percentages don't enter into it.

You're right that from a strict question of someone getting on the board it's binary. But the voting tally matters even if the Trian candidates lose. For example, Eisner technically came out victorious in his proxy battle back in the 2000s. But because the vote was as close as it was, Eisner emerged crippled. Wall Street and Hollywood smelled blood in the water. He would resign about a year later.

Iger needs to beat the Trian candidates decisively to maintain his reputation and standing. These candidates represent a referendum on Iger's tenure as CEO. If he can win the vote by a significant margin, it signals confidence from Wall Street. 10% is already under the direct control of Trian. I think if Iger's candidates can get at least 80% of the vote, this would make future attempts by Trian to change board composition extremely difficult or even pointless. Peltz might divest Trian's holdings and not try again.

If Trian can garner support in the 30%-40%+ range, this will be devastating for Iger. A sign that a large section of shareholders don't have confidence in the current board and management team. Even though they won't have a board seat, Iger's legacy will be in ruins. Institutional investors will begin looking at more substantive change in the firm. It's very difficult to maintain the confidence of Wall Street when a huge portion of shareholders have indicated they don't trust you.

In a way the "Restore the Magic" campaign is actually more shrewd than "Save Disney." "Restore the Magic" is a seemingly more incremental idea, based on replacing two board members most people don't know or care about. That makes getting voters easier than advocating for a new CEO. But it will function similar to the "Save Disney" campaign as a referendum on leadership all the same.

That's why I think Iger is playing not only to win, but to crush Trian. If he doesn't, they'll keep coming back like a predator to wounded prey.

 

[Casper Gutman]

This seems to have been coordinated by Disney's communication teams. There's one of two reasons why Iger and his executive team have been so aggressive:

1) There's actually a chance of Trian getting on the board.
2) They want the vote to be so overwhelming and devastating that Trian never tries again.

I lean towards the second option. The video with Iger, the Professor video, the webpage, and now this seem like they're going scorched Earth. They're trying to break Peltz's desire to continue his campaign. Ultimately, the fate of Disney rests in the hands of large institutional investors. I'd assume most would side with Iger.

But... It's hard not to get a sense of concern from all these moves. Are large voting blocks of shares really up for grabs? I'll admit the reason option 2) doesn't make sense is from Peltz's perspective. Is he really spending his time and money on a campaign that has no chance of success? He doesn't always succeed, but he usually doesn't pick fights that aren't at all winnable. He must have managed to get some voting block beyond his 10%.

A more innocent way to approach this is from Iger's history. He was there during the Save Disney Campaign that devastated Eisner. Maybe he's just a little paranoid about the potential for things to spin out of control. It's better to produce a short video and get endorsements than get to the Shareholder meeting and be blindsided by a strong opposition. It's actually smart strategy. Never underestimate your opponent.

This is going to be fascinating anyway things play out. Is Peltz going to get beat 85% to 15%? Is he going to get 30% or 40%? I have no clue. It's all up in the air.

Or maybe Trian is truly horrible and poses such a danger to Disney that even the relatively slight chance they might succeed is enough to get everyone who cares about the company to fight tooth and nail?

 

[WoundedDreamer]

Remarkable. I was just served this add. Disney is now spending ad dollars on this proxy fight. Wild!

Or maybe Trian is truly horrible and poses such a danger to Disney that even the relatively slight chance they might succeed is enough to get everyone who cares about the company to fight tooth and nail?

I didn't preclude that from being the case. Obviously, people signed the document. That's clear. But it's also pretty clear that Disney's PR team was behind coordinating the statements. They were released at the same time and immediately were picked up by all major newspapers. Disney's communications team would be negligent not to try to get the Disney family in their pocket.

 

[Brian]

Trian is also running ads.