Disney has strongly contested the recent report by the ISS recommending Nelson Peltz for a seat on the board and withholding votes for Maria Elena Lagomasino. The company’s chairman Mark Parker emphasized that ISS failed to recognize Lagomasino’s expertise and contribution to the board. Disney believes that its current board nominees are best qualified to ensure long-term shareholder value.
On the other hand, ISS defended its recommendation for Peltz, pointing out critically flawed succession planning at Disney. Despite concerns about Peltz’s connection to former Disney employee Ike Perlmutter, ISS believes that Peltz could bring valuable skills to the board. The advisory firm highlighted the importance of fresh perspectives in navigating an evolving global landscape.
Disney raised concerns about Perlmutter’s influence on Trian’s decisions, calling it a potential hindrance to constructive collaboration with the board. The company fears that Peltz’s appointment could jeopardize ongoing efforts to turnaround Disney’s performance. However, ISS remains convinced of Peltz’s ability to contribute positively, particularly in addressing Disney’s succession planning issues.
Disney defended Lagomasino’s track record as a seasoned financial leader with a strong background in corporate governance. Her involvement in promoting fiduciary responsibility through the Institute for the Fiduciary Standard was highlighted as a valuable contribution to the board. The company believes that Lagomasino’s expertise aligns well with Disney’s governance practices and long-term strategic goals.
The battle for Disney’s board reflects the complex dynamics at play in corporate governance and shareholder activism. While Disney and ISS have conflicting views on Peltz’s suitability for the board, the ultimate decision lies in the hands of the shareholders. The outcome of this boardroom struggle will have significant implications for Disney’s future direction and performance. It remains to be seen whether ISS’s recommendation will sway shareholder votes in favor of Nelson Peltz’s appointment.
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