Nelson Peltz Wants to ‘Restore the Magic’ at Disney

Nelson Peltz wishes to “restore the magic” to the House of Mouse. But first, he has to get on the board of directors. On March 4, he released a lengthy white paper, over 130 pages long, analyzing Disney’s financial performance — and suggesting strategic fixes.

Founded in 2005, Trian Fund Management, L.P. is a multi-billion dollar investment management firm that invests in high-quality companies with significant long-term potential. According to the white paper, the company works “collaboratively with management and boards to optimize strategy, operations and value creation opportunities.”

Trian is urging Disney shareholders to vote Peltz and ex-Disney CFO Jay Rasulo as board nominees during the annual shareholder meeting taking place on April 3 of this year. In the white paper, Trian detailed several reasons why Peltz and Rasulo should be on Disney’s board.

Nelson Peltz & Trian Publish White Paper of Recommendations for Disney Changes, Including a Board Seat for Himselfhttps://t.co/gI2TTfKvUc

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They wrote, “Disney is an iconic company with unrivaled scale, unparalleled customer loyalty, irreplaceable intellectual property, and an enviable commercial flywheel. However, it has woefully underperformed.” The paper noted that executives received $1 billion over the last decade despite poor performance.

It continued, “We believe the Board suffers from a culture that impedes effective oversight. The Directors, in our view, lack focus, alignment and accountability, causing the Board to fail at fulfilling its primary responsibilities.”

Therefore, Trian wishes for Peltz and Rasulo to be on the board because both are experienced and aligned with shareholders. Also, they believe the men will bring an “ownership mentality” into the boardroom.

In the paper, Trian says that Disney should spend its money on lower-cost, easier-to-produce projects to balance Disney’s higher-cost franchise content. The company also believes that Disney’s mainstay sequels may be “less risky” film ventures but do not drive long-term benefits in the way that new projects can.

Trian also suggests merging Disney+ and Hulu to cut costs. This move alone could be cost-efficient to the tune of $1 billion.