Nelson Peltz’s Trian Group gained more support in the argument over Disney’s board on Wednesday as Egan-Jones recommended shareholders to vote for Trian’s nominees Peltz and Jay Rasulo before Disney’s yearly meeting on April 3. Egan-Jones follows in the steps of Industrial Shareholder Services, which supported Peltz (but not Rasulo) last week.
The group suggested shareholders refrain from voting for Maria Elena Lagomasino and Michael B.G. Froman.
“We see very little downside and a lot of benefits in adding the Trian Nominees to the Board,” Egan-Jones stated, pointing to the “seemingly lacking” of a long-term succession plan for Bob Iger, a Board that “seems isolated and unwilling to interact with investors and the wider market” and “a wish to maintain the current situation for as long as possible and at any expense” as reasons for required change.
Egan-Jones also stated that Disney has a business model they believe was created “for the last decade, but not forward looking and adaptable enough to ensure success in the next” and highlighted “average financial performance.”
Notably ISS only supported Peltz, not Rasulo, but Egan-Jones is supporting both of Trian’s nominees.
In addition to ISS and Egan-Jones, over a dozen current and former public company directors who worked with Trian and Peltz on their boards have expressed their support for his campaign.
Meanwhile, Disney has received support from Glass Lewis, “Star Wars” creator George Lucas, activist investor ValueAct Capital, J.P. Morgan CEO Jamie Dimon, former Walt Disney Imagineering president Bob Weis and Walt Disney’s grandchildren.
