HomeMarket NewsDisney's Board Defeats Trian and Blackwells in Shareholder Vote, Witnesses Share Price...

Disney’s Board Defeats Trian and Blackwells in Shareholder Vote, Witnesses Share Price Slump Below $120

Actionable Trade Ideas

always free

Disney CEO Bob Iger 2

The venerable Walt Disney Company (DIS) emerged victorious in a fierce confrontation with activist investors during its annual meeting. The conglomerate’s full slate of 12 directors clinched a decisive triumph against the nominees put forth by investment powerhouses Trian and Blackwells.

The shareholder vote signifies a crucial juncture, offering a resounding endorsement of Disney’s strategic vision and leadership. Notably, CEO Bob Iger received an overwhelming 94% of the votes, as confirmed by sources cited from The Wall Street Journal. On the other hand, Maria Elena Lagomasino, a Disney director, secured 63% of the vote, while Nelson Peltz, Trian’s nominee, garnered 31% of the votes cast.

Expressing disappointment over the outcome, Trian conveyed appreciation for the engagement and backing received from Disney stakeholders. The investment firm stated its pride in steering the company towards enhanced value creation and robust governance.

Resilient Support for Disney’s Board

The elected members of Disney’s board consist of a diverse lineup, including professionals such as Mary T. Barra, Safra A. Catz, Amy L. Chang, D. Jeremy Darroch, Carolyn N. Everson, Michael B.G. Froman, James P. Gorman, Maria Elena Lagomasino, Calvin R. McDonald, Mark G. Parker, and Derica W. Rice. Their collective expertise spans across technology, finance, and media domains.

Mark Parker, the board’s chairman, emphasized the unwavering commitment to Disney’s long-term prosperity, stressing the goal of maintaining the company’s dominant position in the entertainment industry amidst evolving landscapes and fierce competition.

CEO Bob Iger echoed Parker’s sentiments, expressing gratitude to shareholders for their faith in the management and board. Emphasizing the resolution of the proxy contest as a pivotal moment, Iger highlighted the importance of redirecting focus entirely towards critical priorities such as growth, shareholder value, and creative excellence.

The official certification of the election results is pending, to be duly reported to the SEC.

Related Link: Elon Musk Says ‘Nelson Peltz Should Definitely Be On The Disney Board,’ It Would ‘Significantly Improve’ The Share Price

Market Response: Disney Shares Slump Below $120

In the aftermath of resounding shareholder support for the existing leadership, Disney’s stock witnessed a notable decline. The company’s share value slipped by 1.8% to $119.85 post-announcement, extending the day’s downturn to 2.4%, marking the most substantial daily drop in a month.

Chart: Disney Shares React Negatively Post Shareholder Vote

Photo via Shutterstock.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.