Disney (DIS) Chief Executive Officer Bob Iger said Tuesday that the company is doing its best to not let its ongoing proxy battle with activist investor Nelson Peltz distract from its focus on restructuring the business.
„I'm working hard to not let this distract me, because when I get distracted, the people working for me… „It's a distraction for everyone there, and that's not a good thing.“
Last year, Mr. Peltz and his hedge fund, Trian Fund Management, renewed push to revamp company boards; Stock prices hit multi-year lows. Disney is grappling with challenges including a decline in its linear television business, slowing growth in its parks business and losses in its streaming business.
Iger pointed to the complexity of running Disney's multifaceted business as various areas, such as streaming, face increasing disruption.
„This is a business that not only requires a huge amount of knowledge, but also a huge amount of time and focus,“ he said. „This campaign is, in some ways, designed to distract us. … It takes time and focus to create what we need for our shareholders.“
Mr. Iger's comment was Mr. Tryon. 130 page white paper On Monday, he blamed Disney's poor performance on the board of directors, accusing its members of lacking „focus, coordination and accountability.“
Peltz is currently seeking a board seat For himself, along with former Disney CFO Jay Laslo. If the proxy fight continues until the vote, the shareholders' meeting scheduled for April 3 will ultimately decide the board's fate.
Another investment firm, Blackwells Capital, supports the company's current board of directors but is urging shareholders to vote for three nominees to be added to the board.
Disney stock has rebounded from record lows and is up about 11% year over year.
The stock has risen about 25% so far in 2024, outpacing the S&P 500's 6% rise over the same period.