The Walt Disney Company (NYSE:DIS) shares rose as much as 2% on Thursday after Trian Fund Management announced plans to nominate its founder Nelson Peltz and former Disney chief financial officer Jay Rasulo to the entertainment giant's board.
The activist investor reignited its proxy battle with Disney last month, saying it was seeking two board seats following what it called "significant value destruction and missteps" that the board oversaw.
"Unfortunately, the Board and CEO appear to have no conviction that things will get better," Trian stated in a press release issued on Thursday.
Trian had initially sought to nominate three or four board members, but after Rasulo accepted the invitation to be nominated, Trian decided the two would be a stronger option, CNBC reported, citing a person familiar with the matter.
"Disney has an experienced, diverse, and highly qualified Board that is focused on the long-term performance of the Company, strategic growth initiatives including the ongoing transformation of its businesses, the succession planning process, and increasing shareholder value," a Disney spokesperson stated.
The company, however, said its governance and nominating committee will review the nominations and provide a recommendation to the board.
Trian has oversight of shares owned by former Marvel boss Ike Perlmutter, who has been an outspoken critic of Disney CEO Bob Iger.
Iger is trying to turn Disney’s fortunes around following several movie disappointments in recent years as well as a broad restructuring that resulted in thousands of job cuts.
Shares of Walt Disney have gained just 5% year to date, underperforming the 23% gain by the S&P 500 index.