The Walt Disney Company (DIS) denied activist investor Nelson Peltz a board seat because he doesn’t have the “skills and experience” to serve Disney’s board, the company said in a shareholder presentation.
Peltz submitted a preliminary proxy statement nominating himself to Disney’s board and asking shareholders for support Jan. 12. His company, Trian Fund Management, owns 9.4 million shares of Disney valued at $900 million, or about 0.5 percent of the company. In the filing, Peltz said the company is in crisis. He wants to reduce debt by selling assets and help manage Disney’s next CEO succession, which will take place in two years, he wrote.
“Peltz 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,” Disney said in a filing. In a separate letter to shareholders, Disney said it is already instituting some of the measures Peltz suggested, including making its streaming business profitable.
The investor has some support on the inside. Isaac Perlmutter, Marvel Entertainment Chairman, has tried to get the investor on the board at least five times since July, meeting with former CEO Bob Chapek and the current CEO Bob Iger, according to Disney. Trian Fund Management declined to comment.