Activist investor Nelson Peltz makes his case for joining disneyThe board.
Peltz's Trian Fund Management, in formally nominating Peltz and former Disney CFO Jay Rasulo to the media giant's board of directors on Thursday, made a list of initiatives and performance goals they would pursue if elected.
In a proxy presentation, Peltz and Rasulo promised to “finally complete a successful CEO succession,” alluding to CEO Bob Iger's continued delay in his retirement date and his return after former CEO Bob Chapek's firing.
Trian also said he will “align management compensation with performance,” noting Iger's $31.6 million pay package last year, while Disney stock was little changed, underperforming the S&P 500 by 2023.
Trian also aims to target and achieve “Netflix-like margins” of 15% to 20% by 2027, and Peltz adds that he believes Netflix is Disney's biggest competition.
The proxy battle comes as Iger tries to streamline the growing media company to control spending and make his Disney+ streaming platform profitable. Iger has instituted extensive restructuring, including thousands of layoffs.
Peltz reiterated in an interview on CNBC's “Squawk Box” Thursday morning that he believes Disney's current board oversight is “horrible.”
“They said I have no media experience; I don't claim to have any,” Peltz said Thursday. “But I will tell you, I don't think they have much experience in the media.”
So far, Disney has rejected Peltz's attempt to join the board.
In the proxy presentation, Peltz also addressed the future of ESPN, which he called the company's “crown jewel,” with the goal of creating a solidified, detailed turnaround period and business plan to build the platform. Iger has previously said that Disney is prioritizing making ESPN the “preeminent” digital sports platform.
And Peltz called for a board-led review of the studio's creative to “restore leadership accountability” and regain the company's leading box office position.
Peltz and Rasulo intend to execute a clear vision for the brand's theme parks, targeting “single-digit operating income growth,” according to the document.
Peltz told CNBC on Thursday that he visited Disney World last week.
“It was fascinating because… we didn't have any special passes. We didn't have tour guides… Everyone was friendly. I mean, Magic Kingdom and Hollywood Studios, fantastic,” he said. “All the employees were smiling, and that's probably largely because they didn't own any Disney stock.”
This story is developing. Please check for updates.
