Activist investor Peltz defeated in Disney board battle

BILLIONAIRE activist investor Nelson Peltz has failed in his attempt to secure a seat on Disney’s board after shareholders backed the Hollywood giant instead.

At its annual general meeting yesterday, Disney confirmed it had won the support of enough investors to see off a proxy battle mounted by Mr Peltz, who holds a stake in Disney worth $3.5bn (£2.8bn). The result marks a victory for Bob Iger, the Disney chief executive, who will be re-appointed to the company’s board alongside 11 other existing directors.

Mr Peltz, who holds a stake in Disney through his vehicle Trian Fund Management, waged a campaign against the media giant, arguing its performance was lagging behind rivals and taking aim at its bungled succession planning.

He also lashed out at the diverse casts of Disney’s recent films. He told the Financial Times: “People go to watch a movie or a show to be entertained. They don’t go to get a message.” Disney last week said Mr Peltz was “ill-equipped to serve on Disney’s board” and that he would “harm Disney and jeopardise our strategic transformation”.

The activist, who is the father-in-law of Brooklyn Beckham, was pushing for board seats for himself and Jay Rasulo, former Disney finance chief.

He won the support of influential advisory group Institutional Shareholder Services, which recommended that investors should vote to add the billionaire to Disney’s board. However, rival adviser Glass Lewis sided with Disney and Mr Iger in the dispute, alongside high-profile figures including JP Morgan boss Jamie Dimon and Star Wars creator George Lucas.

Vanguard Group and Blackrock, Disney’s two largest shareholders, were among the investors to vote in support of the company.

In a statement, Trian said: “While we are disappointed with the outcome of this proxy contest, Trian greatly appreciates all of the support and dialogue we have had with Disney stakeholders.”