Disney shareholders back Iger, reject activist push for board seats

Walt Disney shareholders voted to re-elect all 12 current board members, handing CEO Bob Iger a victory in his proxy fight with activist investors. This ends a costly and contentious battle launched by billionaire Nelson Peltz and Blackwells Capital, both seeking board seats and changes at the company. The activist investors contended that the entertainment company was underperforming in this era of streaming.

“I want to thank our shareholders for their trust and confidence in our Board and management. With the distracting proxy contest now behind us, we are eager to focus 100% of our attention on our most important priorities: growth and value creation for our shareholders and creative excellence for our consumers,” said Bob Iger.

Despite the win, Disney still faces significant hurdles: Finding Iger's successor: With Iger's retirement planned for 2026, the board needs to identify a suitable replacement. They assured shareholders of a dedicated search.

Streaming profitability: Disney must make its streaming business profitable, a key concern for investors.
ESPN app launch: Launching a successful app for the flagship ESPN network remains a priority.

Analysts believe Iger has a limited window to deliver on his recovery plan. Failing to do so could see shareholder sentiment shift.

Peltz and Blackwells, though disappointed, highlighted some gains: Peltz said: "We want Disney to get back to making great content and delighting consumers." He promised to remain vigilant. Blackwells informed that their primary goal of keeping Peltz off the board was achieved.

The proxy fight was a referendum on Disney's ability to:

Reinvigorate film and TV franchises
Make streaming profitable
Secure ESPN's digital future

Both sides invested heavily in a public campaign, which included personal attacks. While Iger received 94% shareholder support, Peltz only secured 31% votes.

"Shareholders appear to trust Iger's vision and see Peltz as disruptive," said Bill George, a former CEO. Trian, Peltz's firm, was Disney's fifth-largest shareholder. Their investment in Disney underperformed due to the proxy fight. Disney stock has risen 31% this year, making it the top performer on the Dow Jones.

While Trian feels disappointed, but he acknowledges Disney's rising stock price. While respecting shareholder decision, Blackwells Capital has taken the position that their candidate could have helped. Overall, Disney has gained breathing room but needs to deliver on its promises. Activist investors remain engaged, and pressure to improve performance persists.