With Disney’s heated proxy battle against Nelson Peltz nearing its conclusion, all eyes are on CEO Bob Iger as the countdown to the shareholder vote continues.
Deadline reports that as the clock ticks down to the close of Disney’s intense proxy battle with Nelson Peltz, the stakes are high for CEO Bob Iger. The results of the board of directors’ voting will be unveiled Wednesday at the company’s annual shareholder meeting, following a hefty $40 million expenditure authorized by Iger to combat Peltz’s activist investor campaign.
Despite the outcome, Iger finds himself under scrutiny for mishandling succession plans, igniting the ongoing battle.
Peltz’s rallying cry against Disney revolves around the botched regime change, resonating more strongly than his strategic insights. ISS, a prominent proxy advisory service, echoed concerns about Disney’s flawed succession process in 2020, culminating in Iger’s abrupt departure amid the onset of the pandemic and the appointment of Bob Chapek as CEO.
This misstep prompted ISS to throw its weight behind Peltz, reminiscent of its pivotal role in withholding votes from former CEO Michael Eisner in 2004.
The failed succession process continues to haunt Disney, exacerbated by Iger’s lingering presence as executive chairman, often clashing with Chapek. Peltz’s involvement has prompted a reevaluation of the board’s engagement, winning support from ISS, top pension fund CalPERS, and proxy advisor Egan-Jones.
While Disney appears to have an edge in the vote, the contest’s intensity suggests a need for swift CEO succession post-proxy battle. Iger’s contract extension until 2026 underscores the urgency to identify potential successors, with internal candidates Dana Walden, Alan Bergman, Josh D’Amaro, and Jimmy Pitaro in the running.
However, external recruitment from the tech sector remains plausible, reflecting Disney’s strategic shift towards streaming.
Despite the anticipated outcome, the proxy battle has dented Iger’s reputation, prompting calls for board autonomy and a robust succession process. With shareholder sentiments divided, Disney faces a pivotal moment, signaling a dire need for governance reform and proactive engagement with stakeholders.
In the wake of this proxy skirmish, Disney’s board must heed the wake-up call and embark on a thorough introspection to navigate future challenges and safeguard shareholder interests.
