Gabrielle Russon
Star Wars creator George Lucas and former The Walt Disney Company CEO Michael Eisner are among those publicly backing Disney in a battle over the company’s board that comes to head next month.
Billionaire activist Nelson Peltz and former Disney financial chief Jay Rasulo are vying for two seats on the board and accusing Disney of not delivering to shareholders.
Blackwells Capital, another activist firm, is also fighting for three board seats.
But influential shareholders said The Walt Disney Company CEO Bob Iger and his current board are the right leaders to navigate the company.
Lucas, who is reportedly largest individual Disney shareholder, said he has voted for Disney’s incumbent board members and urged others to follow him.
“Creating magic is not for amateurs. When I sold Lucasfilm just over a decade ago, I was delighted to become a Disney shareholder because of my longtime admiration for its iconic brand and Bob Iger’s leadership,” Lucas said in a statement. “I have full faith and confidence in the power of Disney and Bob’s track record of driving long-term value.”
Iger’s former boss, Eisner, also weighed in Friday in support for Iger and Disney on social media.
“Bringing in someone who doesn’t have experience in the company or the industry to disrupt Bob and his eventual successor is playing not only with fire but earthquakes and hurricanes as well. The company is now in excellent hands and Disney shareholders should vote for the Disney slate,” wrote Eisner who noted he had faced his own proxy fight during his tenure.
But in its bid for more control, Peltz’s Trian Partners argued Disney is underperforming financially and its stock has been “a losing proposition” over the past decade.
The hedge fund management firm said Disney’s board failed to provide oversight and be visionary enough to react when ESPN lost cable subscribers, Disney acquired Fox in a $17 billion deal and Disney Plus racked up billions in losses.
“We believe the root cause of Disney’s underperformance is a Board that suffers from a culture that impedes oversight and lacks accountability,” Trian said in the 133-page “Restore the Magic” pitch to shareholders.
Trian also said Disney movies are struggling, mentioning box office duds “Haunted Mansion,” “Lightyear” and “Indiana Jones 5,” “The Marvels,” and ‘Wish.”
Trian also accused Disney of bad succession planning and creating a “leadership void.”
Earlier this month, Iger called the proxy fight a distraction as he said he is focused on building the company’s value to shareholders.
“This campaign is, in a way, designed to distract us to take our eye off all those balls,” he said during an investor’s conference.
The annual Disney shareholder’s virtual meeting is scheduled for April 3.
