Disney appears to be gaining the upper hand in the battle for board seats as more than half of all shares have been voted before the company’s annual meeting on Wednesday. T. Rowe, a major shareholder, has backed Disney by voting to re-elect the challenged directors, Maria Elena Lagomasino and Michael Froman. Additionally, Disney has secured the support of BlackRock, its second-largest shareholder.
The proxy battle has intensified as top executives at Disney, activist investors Trian and Blackwells Capital, and call center workers have been making last-minute pleas to woo voters. Disney is pushing for the election of all 12 current directors, while Trian and Blackwells are vying for their own seats on the board.
The outcome of the battle is crucial for Disney as it navigates challenges in reinvigorating its creative franchises, making its streaming business profitable, and building ESPN’s digital future. CEO Bob Iger has labeled the activist campaigns a “distraction.”
Billionaire investor Nelson Peltz’s Trian Fund Management aims to secure two board seats, while Blackwells Capital is pushing for three seats and advocating for strategic changes within the company.
As the annual meeting approaches, both sides are racing to sway shareholders, with Disney counting on the endorsements of prominent figures like George Lucas, Laurene Powell Jobs, and Jamie Dimon to bolster support for the current board.
The outcome of the proxy battle remains uncertain, with more votes expected to come in before the meeting. The meeting, scheduled for Wednesday, will be held virtually, providing shareholders with the opportunity to have their voices heard.