This White Paper provides information about the qualifications and insights of Trian’s two nominees for the Board and outlines initiatives that Trian believes the Board should consider to improve the governance and performance of the Company.
The Trian Group,1 which beneficially owns $3.5 billion of common stock in The Walt Disney Company, issued a comprehensive assessment of Disney that links years of failed oversight concerning governance, executive compensation, succession and strategy by Disney’s Board of Directors to the Company’s chronic underperformance. This White Paper also provides information about the qualifications and insights of Trian’s two nominees for the Board and outlines initiatives that Trian believes the Board should consider to improve the governance and performance of the Company. The Disney annual meeting will be held on April 3, 2024.
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Trian said:
“We love Disney and believe it is one of the most advantaged diversified media companies with brands, assets and loyalty that enable it to delight consumers and perform for shareholders. However, we believe Disney has lost its way in the past decade, making strategic and operational missteps that have resulted in deteriorating financial performance2 and poor absolute and relative stock returns3, costing shareholders billions.4 We believe the root cause of Disney’s chronic underperformance is a Board that lacks focus, and accountability and has consistently failed to fulfill its essential duties. At this critical point for Disney, we believe shareholders need independent directors who have the dedication, shareholder mindset and track record necessary to help unlock the Company’s immense creative and financial potential. In our view, change is desperately needed.
Following rigorous analysis, we have outlined a number of areas in which we can bring fresh thinking, including: (i) enhancing corporate governance and accountability; (ii) accelerating media profitability; (iii) reviewing the creative engine, and (iv) clarifying Disney’s strategic focus. We are confident that with Nelson Peltz and Jay Rasulo in the Disney boardroom, working collaboratively with CEO Bob Iger and Disney’s other directors, we can restore the magic and generate returns that shareholders expect and deserve.”
Founded in 2005, Trian Fund Management, L.P. (“Trian”) is a multi-billion dollar investment management firm. Trian is a highly engaged shareowner that combines concentrated public equity ownership with operational expertise. Leveraging the 40+ years’ operating experience of our Founding Partners, Nelson Peltz and Peter May, Trian seeks to invest in high quality but undervalued and underperforming public companies and to work collaboratively with management teams and boards to help companies execute operational and strategic initiatives designed to drive long-term sustainable earnings growth for the benefit of all stakeholders.
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