The Walt Disney Co. recently disclosed the official vote totals from its annual shareholder meeting held on April 3, where Chairman and CEO Bob Iger triumphed over Nelson Peltz’s attempt to secure two board seats. Despite the high-stakes proxy fight between the two parties, Disney’s full slate of 12 board nominees was approved by shareholders with minimal drama during the meeting.
Bob Iger, who finished fourth among all board nominees, received votes representing approximately 1.12 billion shares, with 72 million shares withheld. While Iger garnered the backing of more than 90% of the shareholder base, the mere fact that he landed in fourth place suggests potential concerns among investors regarding his leadership and succession planning strategies.
On the other hand, Nelson Peltz, backed by Trian Fund Management, secured the endorsement of 369.8 million shares, or about 31% of the total, with 819.5 million shares withheld. His running mate, Jay Rasulo, former Disney CFO, had a significantly lower level of support, receiving votes from about 139 million shares, while 1.05 billion were withheld. This discrepancy highlights the disparity in confidence between the two factions.
Maria Elena Lagomasino, a financial services executive, faced significant scrutiny during the campaign period. Lagomasino received 748,599,867 votes for and 441,719,526 withheld, indicating a lack of overwhelming support from shareholders. In comparison, Michael Froman, President of the Council on Foreign Relations, had more favorable results, with over 1 billion shares voted for him and 148.6 million withheld.
The top vote-getter among board nominees was James Gorman, the former Morgan Stanley CEO, who received votes from approximately 1.16 billion shares, with only 29.4 million withheld. However, a group of additional nominees proposed by Blackwells Capital received minimal support, reflecting a lack of confidence from shareholders in their capabilities.
Disney’s annual shareholder meeting shed light on the dynamics within the company’s board of directors and the level of confidence investors have in its leadership. The clash between Bob Iger and Nelson Peltz underscored underlying concerns about succession planning and operational issues, prompting a reevaluation of the current management structure. Moving forward, Disney will need to address these issues proactively to regain investor trust and ensure long-term stability and growth.