Disney CEO Robert Iger attended the 95th Academy Awards Ceremony held at the Dolby Theater in Hollywood, California on March 12, 2023.
Valerie Macon | AFP | Getty Images
Activist investor Blackwells said Monday that Disney’s board has not disclosed that shareholder ValueAct Capital has financial ties to the entertainment company, and the company’s support for the company’s board has come under scrutiny. It was decided that it would be done.
Mason Morfit and his $12 billion investment company ValueAct foretold Disney CEO Bob Iger called “constructive” shareholder support in January when the company secured support from ValueAct ahead of a proxy battle with Nelson Peltz’s Trian Partners. It was evaluated as
Blackwells Capital previously expressed support for Iger and the Disney management team. Said ValueAct has managed more than $350 million in Disney pension funds dating back to 2013.
Activists who nominated their own director candidates in longshot bids said Disney allowed shareholders to believe that Morfitt’s funds “uniquely provided support for an independent and unconditional board.” Ta.
blackwells highlighted A 2022 filing from the Department of Labor revealed that ValueAct managed approximately $355 million in Disney pension funds. Application forms for 2023 and 2024 are not available.
Blackwells estimates that Disney paid a cumulative $95 million in fees to ValueAct from 2014 to 2022.
Disney and Trian have been engaged in a proxy battle since October, and the battle has intensified as Disney’s annual shareholder meeting approaches. Mr. Tryon said Disney’s board was so tied to Mr. Iger that Mr. Iger ousted his hand-picked successor, Bob Chapek, and returned as CEO with board approval.
When Peltz began reaccumulating his stock, Disney stock had fallen dramatically from its 2021 highs and was trading at levels not seen since 2014. Disney has repeatedly expressed its support for Mr. Iger, emphasizing that its directors have experience overseeing successful succession plans.
Disney is was suggested Mr. Tryon said he harbored ill will toward the investment firm after it fired him as a pension fund manager.
Disney also said in its proxy filing that the company is implementing plans to invest in its experiences and streaming businesses. It also touts ValueAct and Morfit support for presentations and securities filings.
“Can this board be trusted to assess the significance of its support for Value Act without shareholders fully understanding its relationship with Value Act?” Blackwells asked.
Representatives for Disney, Blackwells and ValueAct did not respond to requests for comment outside of normal business hours. A Trian spokesperson declined to comment.