The California Public Employees Retirement System (CalPERS) revealed its support for activist investment firm Trian Fund Management’s two director nominees for Walt Disney‘s board.
This decision, amidst one of the most closely monitored and financially consequential struggles for corporate influence, reflects CalPERS’ belief in the benefits of introducing fresh perspectives to Disney’s board of directors.
With CalPERS being among Disney’s top 30 investors and holding 6.65 million shares, its vote carries substantial weight.
The pension fund emphasized the importance of independent corporate boards, executive compensation oversight, and enhanced transparency, asserting that the new directors possess the qualifications and capacity to instigate necessary changes in corporate governance.
The looming annual meeting will determine the composition of Disney’s 12-person board, important for guiding strategy as CEO Bob Iger endeavors to reshape a company valued at $224 billion. As more shareholders prepare to cast their votes, Disney, Trian, and another hedge fund, Blackwells Capital, engage in persuasive efforts.
Disney seeks to reassure investors of its trajectory, citing share price gains and Iger’s strategic initiatives to revitalize creativity and streamline operations.
Trian and Blackwells Capital advocate for boardroom reform, criticizing Disney’s succession planning, technological utilization, and real estate strategies.
Proxy advisory firms, including Institutional Shareholder Services (ISS), Egan-Jones, and Glass Lewis, offer varying recommendations to investors.
ISS supports Trian’s candidate, while Egan-Jones endorses both Trian’s nominees, including Jay Rasulo, a former Disney CFO. Meanwhile, Glass Lewis advises backing all 12 of Disney’s current directors.
The forthcoming shareholder decision holds significant implications for Disney’s future direction and governance structure.
Investor scrutiny intensifies as corporate governance concerns fuel the ongoing struggle for influence within Disney’s boardroom.
