Disney Company in Proxy Fight as Iger Tries to Course-Correct, Adds New Board Chairman
By Movieguide® Staff
As The Walt Disney Co. tries to battle back to its former profitability, Nike executive chairman Mark Parker will join their board of directors as Chairman.
Parker will take over for Susan Arnold, who became chairman after Bob Iger retired from the company at the end of 2021.
“Mark Parker’s vision, incredible depth of experience and wise counsel have been invaluable to Disney, and I look forward to continuing working with him in his new role, along with our other directors, as we chart the future course for this amazing company,” Iger said in a recent statement. “On behalf of my fellow Board members and the entire Disney management team, I also want to thank Susan for her superb leadership as Chairman and for her tireless work over the past 15 years as an exemplary steward of the Disney brand.”
However, the company also faces a proxy battle with activist investor Nelson Peltz and his fund Trian Partners.
The Hollywood Reporter writes:
Trian has nominated Peltz to serve on the board. In a presentation published on Jan. 11, the investment firm described many of Disney’s challenges as “self-inflicted” and advocated for the entertainment giant to restore its dividend by fiscal year 2025, seek more “efficiencies and additional profits” and expressed concern that Disney management’s direct-to-consumer streaming push with Disney+ “failed to effectively communicate the financial rationale behind the strategic pivot.”
Peltz’ fund went on to elaborate its concerns with Disney+, adding: “We are surprised that Disney’s best-in-class IP, franchises, and scale have not led to in-line, if not superior, unit economics compared with Netflix, which generally lacks high quality, franchise IP.” It also claimed that Netflix is more cost effective in its production and programming costs compared to Disney.
The activist investor’s Trian also specified that it is not looking to oust Iger or spin off assets like ESPN but that the fund is for “ensuring successful CEO succession within 2 years,” meaning that it is looking for Iger to leave that role at that time.
Amid their financial struggles, Iger called on shareholders for support.
“Mr. Iger’s mandate is to use his two-year term and depth of experience in the industry to adapt the business model for the shifting media landscape, rebalancing investment with revenue opportunity while bringing a renewed focus on the creative talent that has made The Walt Disney Company the envy of the industry,” the company wrote in a statement. “Mr. Iger has already taken decisive steps to realign content creation and distribution, and reposition Disney’s streaming platforms and linear broadcast and cable networks for enhanced profitability for the Company.”
Movieguide® previously reported:
As The Walt Disney Co. looks to course correct with Bob Iger at the helm—after Bob Chapek’s exit—they would do well to listen to their largest audience, families.
Iger is no stranger to the Disney CEO position, as he held the title previously from 2005 to 2020 before Chapek took the reins.
The longtime Disney executive met with the company for the first time as their new CEO and discussed the hiring freeze, which he said would remain in place for the time being.
According to CNN Business, Iger believes creativity will result in profitability.
Iger made his goal clear for the company in a recent town hall meeting: spend less resources “chasing subs with aggressive marketing and aggressive spend on content,” and start “chasing profitability.”
“A number of you who worked with me know I’m obsessed with [creativity],” Iger explained. “But I’m obsessed with that for a reason. It is what drives the company.”
Whether a direct result of Chapek’s leadership or just unfortunate timing, Disney’s push into progressive themes in their movies and Disney+ series became a clear indicator of the company’s disregard for their audience.
While Disney’s legacy is built on family-friendly staples like FINDING NEMO and TOY STORY, Disney’s recent outings at the box office have ostracized families across the country and, as a result, fallen short of monetary expectations.
For example, STRANGE WORLD is on course to lose around $100M after an unsuccessful opening over Thanksgiving weekend.
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