Iger fights back in Disney boardroom battle with Pelz

DISNEY has launched a counter-attack in its boardroom battle against Nelson Peltz, saying the activist investor lacked the skills to help the company.

The US media giant published a slideshow outlining its defence against Mr Peltz, saying he “does not understand Disney’s businesses, and lacks the skills and experience to assist the board in delivering shareholder value in a rapidly shifting media ecosystem”.

Mr Peltz last week launched a campaign for a board seat at Disney through his company Trian Partners, mounting a challenge to the chief executive, Bob Iger, who recently returned to lead the company for a second time. In a blistering statement, Mr Peltz attacked “overthe-top” executive pay and a “crisis” of overspending that included the $71bn (£58bn) takeover of 21st Century Fox.

The activist has previously pushed for shake-ups at consumer goods groups Unilever and Procter & Gamble. He is also a director at Madison Square Garden (MSG) Sports, which owns the New York Nicks and Rangers teams.

But Disney yesterday defended its decision not to appoint Mr Peltz to the board. It said: “Peltz has no track record in large cap media and tech, no solutions to offer for the evolving media landscape and if MSG Sports is his training ground, it has not been a good one.”

The activist, whose daughter Nicola married Brooklyn Beckham last year, has built a $900m stake in Disney through Trian Partners.

He has called for the company to either dispose of its streaming business or buy the remaining stake in streaming service Hulu from rival Comcast, which owns Sky.

In its rebuttal, Disney said it was already working to improve profitability at Disney+, alongside wider costcutting measures and improving the guest experience at its theme parks.

Disney also defended Mr Iger, who returned as chief executive in November. His predecessor, Bob Chapek, was ousted after a slump in Disney’s share price and a series of scandals including a row over the company’s response to Florida’s “Don’t Say Gay” bill.

Mr Chapek was paid $24m last year and is line to receive severance pay of $20m, company filings show. Mr Iger, who held an advisory role prior to his re-appointment, took home $15m.