Benzinga - by Piero Cingari, Benzinga Staff Writer.
The Walt Disney Company (NYSE:DIS) announced a resounding victory against activist investors Wednesday at its annual meeting.
The company’s entire slate of 12 directors won “by a substantial margin” against the candidates proposed by investment firms Trian and Blackwells, the House of Mouse said.
The shareholder vote comes at a critical juncture and marks a significant endorsement of Disney’s strategic direction and leadership.
Shareholders overwhelmingly endorsed CEO Bob Iger, who secured 94% of the votes cast, according to The Wall Street Journal, which cited sources familiar with the matter. Disney director Maria Elena Lagomasino garnered 63% of the vote, while Nelson Peltz, the nominee from Trian, received 31% of the votes cast.
"While we are disappointed with the outcome of this proxy contest, Trian greatly appreciates all of the support and dialogue we have had with Disney stakeholders. We are proud of the impact we have had in refocusing this Company on value creation and good governance,” Trian said in a press release.
Disney Shareholders Show Support For Board Disney’s elected board members are Iger, Mary T. Barra, Safra A. Catz, Amy L. Chang, D. Jeremy Darroch, Carolyn N. Everson, Michael B.G. Froman, James P. Gorman, Maria Elena Lagomasino, Calvin R. McDonald, Mark G. Parker and Derica W. Rice.
Their collective experience spans various sectors, including technology, finance and media.
Mark Parker, chairman of the board, highlighted the board’s unwavering commitment to Disney’s long-term prosperity in a statement and said its focus is on maintaining the company’s leading position in the entertainment industry, especially during a period marked by significant changes and competitive challenges.
CEO Iger echoed Parker’s sentiments, thanking shareholders for their confidence in the management and board. Iger emphasized the conclusion of the proxy contest as a pivotal moment, allowing the company “to focus 100%” on the most important priorities, such as “growth and value creation for our shareholders and creative excellence for our consumers."
The election’s final results are pending certification and will be reported to the SEC.
Related Link: Elon Musk Says ‘Nelson Peltz Should Definitely Be On The Disney Board,’ It Would ‘Significantly Improve’ The Share Price
Market Reaction: Disney Shares Dip Below $120 Disney shares declined substantially after shareholders resoundingly voted to support the current leadership.
Disney’s stock price fell by 1.8% to $119.85 following the news, extending the session’s drop to 2.4% and marking the worst daily performance in a month.
Chart: Disney Shares Negatively React Following Shareholder Vote
Photo via Shutterstock.
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