A major advisory service recommended that shareholders support activist Nelson Peltz's attempt to join Disney's board, stating that change is necessary at the company.
Institutional Shareholders Services' recommendation wasn't a strong endorsement of Peltz's proxy fight. It advised voting for Peltz but not for Trian's second nominee, Jay Rasulo.
Peltz is expected to replace current board member Maria Elena Lagomasino, who has been on the board since 2015. ISS didn't support Lagomasino.
The service also suggested that shareholders refrain from voting for the second group of activist shareholder nominees supported by Blackwells Capital: Craig Hatkoff, Jessica Schell, and Leah Solivan.
This recommendation differed from Glass Lewis' support of all 12 Disney director nominees earlier in the week. Glass Lewis highlighted The Walt Disney Company's clear strategy, strong board additions, and measurable business changes since CEO Bob Iger's return in late 2022., pointing to The Walt Disney Company’s clear strategy, its strong additions to the board and “measurable shifts” in the business since the return of CEO Bob Iger in late 2022.
But ISS was troubled by Iger's return after the challenging three years under Bob Chapek's leadership, leading to its support for Peltz.
ISS expressed concern about Disney's difficulties under Iger-chosen Bob Chapek's guidance, although management has taken steps to improve. The return of cinematic success may reassure shareholders about Disney's future.
The analysis also stated that tangible progress toward succession is necessary to boost investor confidence and prevent future problems after Iger leaves.
This story is still developing, stay tuned for updates…
