JPMorgan Chase CEO Jamie Dimon endorsed this Disney CEO Bob Iger in his proxy dispute with activist Trian Partners, CNBC’s David Faber has learned.
Dimon gave the following statement to Faber about Iger:
“Bob is a first-class manager and outstanding leader who I have known for decades. He knows the media and entertainment business intimately and has a track record to prove it. It’s a complicated industry full of creative talent that requires unique expertise and engagement skills, which Bob possesses. It can be detrimental to a company to appoint people to a board unnecessarily. I don’t know why shareholders should take that risk, especially given the significant progress the company has made since Bob’s return.”
Trian, led by Nelson Peltz, launched an intense proxy battle against Disney, urging investors to nominate him and former Disney CFO Jay Rasulo to the board at the April 3 annual meeting.
“Trian is disappointed that Disney is engaging in a scorched earth campaign that appears designed to divert attention from the board’s failures,” Peltz said in a statement Wednesday.
In a 133-page white paper released earlier this month, Peltz outlined calls for a leadership shakeup and an overhaul of traditional Disney TV channels, which he said were a declining business. The activist also wants Disney to target and achieve “Netflix-like margins” of 15% to 20% by 2027. Peltz believes Netflix is Disney’s biggest competitor.
Meanwhile, Iger is trying to streamline the sprawling media company to curb spending and make his Disney+ streaming platform profitable. Iger has initiated major restructuring, including thousands of layoffs.
Nelson Peltz
David A. Grogan | CNBC
In February, Disney reported an underwhelming quarter with a rise in profits, narrower streaming losses and optimistic forecasts as the company saw progress in its cost-cutting efforts. However, the report did not satisfy Peltz.
Dimon rarely engages in proxy fights, while JPMorgan has advised Disney on defense issues in the past.
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2024-03-13 17:02:52
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