Disney shareholder Blackwells Capital calls for Trian to end board campaign

Blackwells Capital, a shareholder of Disney (DIS) since 2018, issued its support for the ongoing restructuring led by the company’s CEO Bob Iger, and “stewarded by an enviable Board of Directors recently enhanced” through the appointments of James Gorman and Jeremy Darroch. Blackwells said that displacing these individuals or other members of the board with Peltz and other Trian selected nominees would deprive shareholders of valuable, experienced voices in the boardroom at a critical time in the company’s history. The shareholder said, “Blackwells is concerned that Trian’s campaign prioritizes Mr. Peltz’s ego over what is best for all Disney shareholders, and that its latest effort may cost Disney shareholders upwards of $50 million and serve only as a value destructive fog for Disney’s leadership and Board. Moreover, Blackwells does not believe that Trian’s efforts at Disney, or indeed at other public companies, have necessarily served the interests of long-term shareholders. Trian and Mr. Peltz’s involvement at Wendy’s (WEN) serves as a cautionary tale for Disney shareholders. In an act of nepotism, Mr. Peltz installed his son, Matthew H. Peltz, as the non-executive Vice Chairman and packed the board with business partners and friends, while presiding over a period of disappointing results for Wendy’s shareholders.” Jason Aintabi, chief investment officer of Blackwells, commented, “Disney has one of the most attractive portfolios of beloved brands and businesses. The combined stewardship of the refreshed Board and the leadership of Mr. Iger, offer Disney shareholders the best opportunity to surface value. Mr. Peltz and Trian need to withdraw this costly and disruptive effort to displace experienced voices in the boardroom and substitute them with Mr. Peltz and his nominees.” Aintabi continued, “Mindless, drum-beating activism is not the right strategy for shareholders. Disney’s Board is acting in the best interests of all shareholders and should be allowed the time to focus on driving value at one of America’s most iconic companies without this fatuous sideshow.”