Disney scolds activist investor Nelson Peltz for ‘failing to offer solutions’

On Tuesday, Disney responded to an offer from activist investor Nelson Peltz to take a seat on the board, citing his lack of experience in major media and technology.

“Peltz has no background in media or large-cap tech, can’t offer solutions to the changing media landscape,” Disney said in an investor presentation that was part of the securities filing.

The tough response came after Trian Fund Management’s boss filed a preliminary proxy statement last week outlining plans to compete for a seat on Disney’s board of directors.

Trian, who owns less than 5% of $900 million worth of Disney, raised questions about how shareholder value has fallen and criticized management overpaying for 21st Century Fox’s assets and aggressively bidding for the pay-TV giant. SkyPLC.

The firm also cited poor corporate governance, including poor succession planning and Disney’s lack of engagement with Trian in the past few months.

“Trian believes Disney’s recent results reflect the harsh truth that the company is in crisis and many issues are affecting investor sentiment,” the hedge fund said in a statement last week.

However, the Disney documents say the board is in a good position to move the company forward, adding that Peltz does not understand the company’s business and does not present a strategy to increase shareholder value.

Bob Iger, who returned as CEO in November after Bob Chapek was fired, promised to focus on cutting costs and profitability after fledgling streaming service Disney+ became a global giant but lost money. Disney said it expects the business to break even by 2024.

Disney said last week that while its senior management and board have “repeatedly communicated with Mr. Peltz over the past few months, the board does not support Trian Group’s candidacy.”

Disney also named independent Nike director and executive chairman Mark Parker as its next chairman, replacing Susan Arnold, who will not run for re-election.