The Walt Disney Company (NYSE:DIS) has defended its decision to deny activist investor Nelson Peltz a seat on the company’s board.
"Nelson Peltz does not understand Disney's businesses and lacks the skills and experience to assist the board in delivering shareholder value in a rapidly shifting media ecosystem," the media company said.
Last week 80-year-old Peltz, who is renowned for leaving his mark on big brands, staked his claim for a position on the board.
He argued that the company was in a “crisis”, bought on by overspending on its streaming business, the purchase of 21st Century Fox, and failed succession planning.
Billionaire Peltz has previous when it comes to shaking up big brands, having taken an active investor role in Proctor & Gamble, which saw its share price more than double after he joined the company's board in 2017, before stepping down in August 2021.
Peltz’s aggressive position is born out of Trian Fund Management, which was founded by Peltz, opposing the re-hiring of Bob Iger. Having acquired his role as a board observer under former Disney boss Bob Chapek, Peltz likely planned to replace him with his own man.
Those plans were quickly scuppered when Disney confirmed last November that former boss Iger will be returning.
Trian, which owns a 0.5% (US$900mln) stake argued that Disney’s share price underperformed the S&P 500 during Iger’s previous 15-year tenure, 270% vs 330% growth.
Trian also blasted Iger’s decision to acquire 21st Century Fox in 2019.