Trian Fund Management Withholds Votes in Disney Proxy Battle

In the ongoing proxy tussle between Trian Fund Management and entertainment titan Disney, Nelson Peltz’s firm has opted to withhold its votes from Disney CEO Bob Iger. This decision, while not entirely surprising given the contentious nature of the battle, raises eyebrows about the potential discord in Disney’s boardroom if Peltz secures a seat next month.

Sources monitoring the situation revealed that Trian Fund Management, led by Nelson Peltz, chose not to throw its weight behind Bob Iger in the proxy vote, adding a layer of intrigue to the impending board meeting scheduled for April 3. This move contrasts with Trian’s prior proxy recommendations and appears discordant with Peltz’s public stance of cooperation with Disney’s management.

Disney’s recent aggressive stance against Trian and Peltz, including a presentation titled “Correcting Trian’s Fact With Fiction” adorned with an image of Pinocchio, underscores the escalating tension. Peltz, however, asserts his intentions to support rather than oust Iger, a sentiment reiterated in a recent Financial Times interview.

“Disney is stupid because I’m not trying to fire Bob Iger, I want to help him,” Peltz stated. “We don’t fire CEOs.”

Amidst the crossfire, Disney has nominated a slate of 12 directors, including Iger himself. Trian, on the other hand, recommends shareholders to vote for Peltz and former Disney CFO Jay Rasulo while withholding support for Disney’s nominees Maria Elena Lagomasino and Michael Froman, both current board members.

Despite Trian’s relatively modest stake in Disney, hovering around 1.5% of outstanding shares, the alignment with former Marvel Entertainment Chairman Ike Perlmutter adds weight to Peltz’s proxy endeavors.

As the board meeting draws near, speculation looms over the potential outcomes, with the possibility of Trian altering its vote before the decisive day. With stakes high and tensions mounting, the Disney boardroom braces for a pivotal chapter in its corporate saga.