In a surprising turn of events, the Disney family has thrown its weight behind CEO Bob Iger in his ongoing battle with activist investor Nelson Peltz. This move, detailed in two separate letters released on Thursday, marks a pivotal moment in the company's complex history and could significantly influence the outcome of the upcoming shareholder vote.
Breaking from past friction, the grandchildren of Walt Disney and his brother Roy O. Disney have publicly endorsed Iger's leadership. One letter, signed by Roy P. Disney, Susan Disney Lord, Abigail E. Disney, and Tim Disney, emphasizes the company's unique identity: "Disney is not a company that makes widgets - it makes magic," they wrote. "Bob Iger, his management team, and the Board of Directors are faithful to this magic."
This strong statement directly confronts Peltz and other activist investors, whom they dismiss as "wolves in sheep's clothing" aiming to dismantle the company's core values. These remarks highlight the emotional significance of the family's involvement, potentially swaying shareholders who value Disney's legacy.
The letters arrive at a crucial juncture, with Disney and Trian Fund Management, led by Peltz, engaged in a heated public battle. Both sides have traded accusations and laid out competing visions for the company's future. Disney argues against Peltz's nominees, claiming they lack relevant experience and harbor personal animosity towards Iger. Trian, however, contends that Disney needs to improve its financial performance and recapture its creative spark.
The family's endorsement serves as a strategic maneuver, potentially influencing shareholder sentiment. With the annual meeting in April approaching, these letters could sway the voting landscape and solidify Iger's position in the ongoing proxy fight.
This public endorsement marks a surprising turn, considering the Disney family's past relationship with Iger. Notably, Abigail E. Disney, a vocal critic of corporate practices, previously co-directed a documentary criticizing Disney's labor practices and questioned Iger's compensation. This history underscores the complex dynamics within the Disney family and the evolving nature of their relationship with Iger.
