Activist investor Nelson Peltz has published his “white paper” suggesting various improvements to The Walt Disney Company, including a Board seat for himself.
Nelson Peltz Files White Paper
The letter, sent to fellow shareholders, states investors have collectively lost almost $200 billion in the past three years as Disney’s stock price fell. Peltz and Trian Fund Management question Disney’s plans to invest $60 billion into theme parks over the next 10 years.
In our view, Disney’s strategic missteps and declining financial performance can be laid at the feet of its Board, which we believe lacks focus, alignment and accountability.
Peltz is in a proxy fight with Disney for two seats on the Board of Directors. Peltz wants to kick Maria Elena Lagomasino and Michael Froman off the Board and replace them with himself and former Disney CFO Jay Rasulo.
Trian says that Peltz and Rasulo will initiate a board-led review of Disney’s creative processes and structure if they are appointed to the Board. Peltz and Rasulo also hope to develop a plan for achieving streaming profitability, successfully find a CEO successor, and urge theme park management to disclose expected returns on investments.
Trian also told shareholders not to vote for Blackwells Capital’s three candidates.