Florida pension plan supported Disney CEO Bob Iger in proxy fight

Walt Disney Co. CEO Bob Iger won control of his company board with the backing of a surprise ally — the state of Florida.

Florida’s pension plan voted in favor of Iger and 10 of the 12 Disney-backed board members at last week’s annual shareholder meeting although it voted against Iger’s and other executives’ compensation. Iger was paid $31.6 million in 2023.

Iger won his proxy battle last week when he got enough votes to keep billionaire shareholder activist Nelson Peltz off the board. The executive compensation proposal backed by Disney also passed.

The Florida State Board of Administration (FSBA) withheld a vote on Peltz, according to its voting disclosure record posted on its website.

Gov. Ron DeSantis, who had famously feuded with Disney for years, serves as a trustee to provide oversight to the FSBA, alongside Chief Financial Officer Jimmy Patronis and Attorney General Ashley Moody.

The pension plan that represents nearly all Florida’s public employees — from state employees, teachers, firefighters and most police officers — owned, as of March 31, about 2.53 million shares of Disney stock, worth about $288 million — a small amount of its giant stock portfolio, according to a spokesman for the FSBA.

The FSBA withheld votes on two of Disney-supported incumbent board members, Maria Elena Lagomasino and Derica W. Rice.

FSBA explained its rationale by saying online of Lagomasino that there were “concerns about pay design/executive compensation. Insufficient disclosure of long-term incentive plan performance goals.”

As to Rice, she “serves on too many boards. Over-boarding concerns,” the FSBA said in its online disclosure.

FSBA also voted against Disney-backed proposal to approve executive compensation, saying there was “insufficient disclosure of long-term incentive plan performance goals and short performance period under long-term incentive plan.”

FSBA’s vote was first reported by POLITICO’s Gary Fineout.

DeSantis’ legal fight against Disney appears to be ending.

The entertainment giant settled a pair of lawsuits in state court last month against DeSantis appointees on the Central Florida Tourism Oversight Board, formerly known as Reedy Creek.

A federal Judge also granted a two-month stay, pausing the litigation between Disney and DeSantis and the tourism board. The lawsuit had previously been dismissed but Disney was appealing the decision.

Disney filed the First Amendment lawsuit last year after Florida lawmakers passed legislation targeting Disney and stripping away the company control of its governing board after Disney spoke out against a law banning instruction of gender identity or sexual orientation in the classroom.