Nelson Peltz has proven to be a thorn in the side of Bob Iger and The Walt Disney Co. for some time, and just days ago launched a proxy fight with the company in the hopes that shareholders will vote him onto the Board of Directors.
Peltz just picked up the endorsement of another key investor in Disney.
Ancora Holdings Group, another “activist investor” in the company that is parent to ABC Owned Stations and ESPN, on Tuesday pleaded with the company to add Peltz to the Disney board.
“In an effort to avert an election contest following a year of distractions and disappointing performance, we hope you join us in encouraging the Board to pursue a viable compromise with Trian Fund Management, L.P. and Nelson Peltz,” Ancora wrote in an open letter to fellow shareholders shared by various business news publications on Wednesday. “Mr. Peltz (or a qualified designee) would make a fantastic addition to Disney’s Board.”
The media giant’s board would benefit from the addition of Peltz, Ancora argued, following an “extended period of absentminded governance, ineffective succession planning, polarizing actions and sustained value destruction.”
Ancora also said that, “while it has been argued that challenges largely stem from the tenure of [former chief executive] Bob Chapek, the Board was in the driver’s seat before, during and after that time.”
Trian holds 1.8% of Disney’s publicly traded shares; Ancora is not among the top 10 institutional investors in Disney, based on data reflecting the end of Q3 2023.
Disney shares ended Wednesday’s trading at $91.50.
