The Walt Disney Company defended its “highly qualified board and clear strategy” for growth and share price gains, as activist investment firm Trian Capital issued its latest attacks on the company.
The annual shareholder meeting, which could see the biggest upset in two decades for the media giant, has been scheduled for April 3.
Trian, co-founded by Nelson Peltz, has joined former Marvel chief Ike Perlmutter in an attack on Disney’s stagnant stock price. Peltz criticized Disney’s management, including CEO Bob Iger, and Trian recommended shareholders withhold support for two Disney board nominees and instead place Peltz and former Disney CFO Jay Rasulo on the 12-member board.
In its latest letter to shareholders today, Trian reiterated its complaints over the past several weeks, saying the streaming flagship Disney+ has been “poorly managed,” ESPN lacks direction and the film studio’s “creative engine has stalled.”
Disney responded with a statement asserting that it “has the right strategy to drive profitable growth and shareholder value creation and has made significant progress against our goals to make our business more efficient and effective, including a laser-focused focus on our greatest brand and franchise assets, a continued commitment to cost reductions and dividend redeployment.”
The company, its management and the Board of Directors “remain focused on this construction plan, which will position our broadcast business for sustainable growth and profitability, revitalize the company’s film studios, strengthen ESPN for the future and advance growth at Disney,” the statement continued. Business experiences.
Disney, which has rejected multiple efforts from investors to put forward nominees for its board, reiterated its view that all 12 of its nominees are “best qualified to create sustainable shareholder value.”