Disney’s Bob Iger triumphs in bitter shareholder vote
Disney Co. fought off a bruising challenge from billionaire investor Nelson Peltz as shareholders delivered their overwhelming support for Chief Executive Officer Bob Iger and the company’s nominated board members.
In Disney’s most consequential board election in 20 years, Peltz fell short in his long-shot bid to wrangle a seat on the board. Preliminary results showed that Peltz mustered about 31% of the vote, according to a person close to the election but not authorized to comment.
In contrast, Iger received a resounding 94% of shareholders’ support — a decisive victory that reinforces his popularity among large institutional investors as well as small shareholders who are nostalgic for the company, its stories and theme parks. Three-quarters of “retail” shareholders (as opposed to larger institutional investors, such as mutual funds) voted in support of Disney’s slate of 12 nominees, including Iger, for the board.
Peltz’s ally, former Disney executive Jay Rasulo, also was snubbed by shareWalt holders, along with a slate of three candidates offered by the smaller activist investor Blackwells Capital.
Despite prevailing in the proxy contest, Disney must reckon with discontent among its shareholder base. This year’s proxy challenge revealed divisions not seen since the end of the Michael Eisner era.
Now, Iger and his management team must accelerate the company’s turnaround plans, including efforts to make its streaming business profitable. Disney needs to find ways to preserve the power of its ESPN sports empire, and other TV channels, while also reinvigorating its movie pipeline and expanding its theme parks and resorts business.
And board members have been tasked to quickly find a capable successor for Iger — a duty that has eluded the company for years.
The proxy campaigns homed in on Disney’s subpar stock performance over the last five years, uneven box-office results and the company’s bungled succession efforts.
Iger returned as CEO in late 2022 but, despite his earlier successful tenure, has struggled amid last year’s Hollywood labor unrest and the industry’s shift to streaming and Netflix’s television takeover.
The opposition campaigns did not pose a direct threat to Iger’s continued tenure; his reelection to the board was uncontested. Still, the divisions exposed by Wednesday’s vote could weaken the celebrated chief’s standing.
Last summer, Disney extended Iger’s contract through 2026 to give him the runway to carry out his turnaround plan. The board also needed time to select and become comfortable with his eventual replacement.