Activist investor Nelson Peltz’s battle for a board shake-up at Walt Disney Co. (DIS) is coming to a head as the results of a crucial shareholder vote are set to be revealed at the company’s annual stockholders meeting on Wednesday. Peltz, who has been pushing for change for months, is seeking to replace two existing board members with himself and former Disney CFO Jay Rasulo.
With more than half the votes counted, Disney is currently leading, according to The Wall Street Journal. The company’s three largest institutional investors, Vanguard, BlackRock, and State Street, hold significant sway in the outcome. While BlackRock has voted in favor of the current board, the positions of Vanguard and State Street remain unknown.
Peltz, who secured the support of proxy advisory firm Institutional Shareholder Services (ISS), has cited the loss of shareholder value and disappointing studio content as reasons for his campaign. Disney, on the other hand, has defended its current board members and highlighted the progress it has made in turning around its business.
The proxy fight at Disney is not just about board seats but also about the company’s succession plan. With CEO Bob Iger’s contract set to expire in 2026, investors are closely watching how Disney plans to navigate the post-Iger era. Peltz and his backers are calling for more transparency and tangible progress in succession planning.
As the battle intensifies, other activists and institutional investors have taken sides, adding more complexity to the situation. The outcome of the shareholder vote will not only determine the composition of Disney’s board but also set the course for the company’s future direction in a rapidly evolving entertainment landscape.