Disney (DIS) CEO Bob Iger said Tuesday that he is doing his best not to let the ongoing proxy battle with activist investor Nelson Peltz divert his focus from transforming the business.
“I work hard not to let this distract me because when I get distracted, everyone who works for me gets distracted and that's not a good thing,” Iger said at Morgan Stanley's media and communications conference on Tuesday.
Last year, Peltz and his hedge fund Trian Fund Management renewed a campaign to change the company's board of directors as the stock price hit multi-year lows. Disney faces challenges that include a declining linear TV business, slowing growth in its theme park business, and losses in streaming.
Iger pointed to the complexities of running Disney's multi-faceted business as various sectors such as streaming face increasing disruption.
“that it [a business] “It requires not only a great deal of knowledge, but a tremendous amount of time and focus,” he said. “This campaign is somehow designed to distract us. …Time and focus are needed to achieve what we need to achieve for shareholders.”
Iger's comments come after Trian published an article White paper 130 pages On Monday, he blamed the board for Disney's poor performance and criticized its members for lacking “focus, alignment and accountability.”
Peltz is currently seeking board seats for himself, along with former Disney CFO Jay Rasulo. If the proxy vote battle continues, a shareholder meeting scheduled for April 3 will ultimately determine the fate of the board.
Another investment firm, Blackwells Capital, supports the company's current board but urged shareholders to vote for its three nominees as additions to it.
Disney shares have struggled to come back from record lows with shares up about 11% year over year.
Since the start of 2024, stocks have risen about 25%, outpacing the S&P 500's 6% rise over the same time period.
“Beer aficionado. Gamer. Alcohol fanatic. Evil food trailblazer. Avid bacon maven.”