Disney names Mark Parker chairman, opposes Nelson Peltz push to join board
Chris Ratcliffe | Bloomberg | beautiful pictures
Walt Disney Company on Wednesday named Mark Parker, executive chairman of Nikeits next board chairman, also announced that it is opposing activist investor Nelson Peltz’s attempt to join the board.
Disney’s announcement comes nearly two months after Peltz Fund Management Company Trian bought a stake worth about $800 million in the company and began seeking a seat on the board. Trian is said to want to perform operational improvement and reduced costs, and expressed opposition to the reappointment of Bob Iger as CEO of Disney.
“Although the senior management of The Walt Disney Company and the company’s Board of Directors have worked with Mr. Peltz several times over the past few months, the Board of Directors does not endorse the Trian Group nomination and recommends that shareholders not endorse its candidate but instead vote for all of the company’s candidates,” Disney said in Wednesday’s release.
CNBC’s David Faber reported that Peltz will respond with a profile next Wednesday.
Disney’s new drama comes after a rough year for the entertainment giant’s stock as soaring streaming costs and a fragile theatrical listing have eaten into profits. The company’s shares closed Wednesday at $96.33. A year ago, Disney was trading at about $160 a share.
Parker will succeed Susan Arnold, whose 15-year term ends at the company’s next annual shareholder meeting. The date of the meeting has yet to be announced. Disney’s board of directors will be reduced to 11 members following Arnold’s departure.
“During his four decades at Nike, Mark has led one of the world’s most recognizable consumer brands through various market developments and successful CEO transitions, and he has unique position as chairman of the Disney Board of Directors during this transition,” Arnold said in a statement. fourth statement. Parker has been a Disney board member for seven years. Nike did not immediately respond to a request for comment.
Iger’s incredible return in November comes with the promise of a two-year term that will spark new development. The CEO also plans to help find his next successor, after the term of his previously handpicked replacement, Bob Chapek, collapsed.
Disney previously announced company-wide cost-cutting measures in November, including a ban on all but essential business travel and a freeze on new hires for all but a few key positions. Iger advocated a hiring freeze when he returned to lead the company later that month.
“Mr Iger’s mission is to use his two-year tenure and deep industry experience to adapt the business model to the changing media landscape, rebalancing investment with simultaneous revenue opportunities. The innovative focus on the creative talent that has made The Walt Disney Company is the envy of the industry,” the company said.