Activist investor Nelson Peltz is urging Walt Disney shareholders to drop board director Michael Froman, stating the media and entertainment company’s current leadership has failed to instill a culture of accountability and is responsible for the 44% drop in its stock price last year.
Trian did not spell out in the letter why it had picked Froman to target among the Disney directors, but suggested that Peltz was more qualified to serve.
Froman has been a Disney director since 2018. He’s also Vice Chair, Strategic Growth at Mastercard and a former U.S. trade representative..
Peltz’ hedge fund Trian Fund Management has also stepped up support with its website www.restorethemagic.com where current Disney shareholders can vote for Peltz and withhold on Froman. Trian is also promoting the campaign across the company’s social media channels.
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On Thursday, Trian Partners sent a letter to Walt Disney shareholders to make a case for Peltz, while also suggesting the billionaire investor was more qualified to serve.
“Shareholders need someone in the boardroom who is experienced enough, committed enough and objective enough to insist that Disney live up to its full potential,” the letter said.
Disney has not responded to FOX Business requests for comment.
Also in the letter, Trian directed criticism at the full Disney board, blaming it for its poor stock performance in 2022, while arguing board directors failed to “instill a culture of accountability.”
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The board did not properly plan for Bob Iger’s succession as chief executive, own very little stock, and they did not “heed constructive shareholder input,” the letter continued.
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The Disney directors, who include the chief executives of carmaker General Motors, biotechnology company Illumina, and sports apparel firm Lululemon Athletica are too distracted to focus on Disney, according to the letter.
Trian currently owns roughly a $1 billion stake in the Walt Disney Company.
Disney reports fiscal first quarter earnings on Feb. 8.
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Reuters contributed to this report.