2024-04-03 17:46:43 ET
Summary
- Disney CEO Bob Iger leads the company to a successful proxy battle win, with all directors elected or re-elected to the board.
- Shareholders demand a long-term vision and "pot of gold" in the future from management.
- Activist investor Nelson Peltz (and his group) and others attempting to gain control of Disney's board did not succeed due to a lack of a comprehensive future vision.
- Clearly the coronavirus challenges, the company shutdown, and the company restart overwhelmed Bob Chapek.
- The proxy battle illustrates the need to communicate to shareholders concrete accomplishments of a future vision that will be very profitable.
Disney ( DIS ) reported that Bob Iger, CEO, has led the company to a successful proxy battle win. All the company-backed directors were elected or re-elected back to the board. Most press releases noted that the margin of the win was substantial. That means that both Iger and the board have a decisive mandate to continue along the pathway that they have mapped out. The win also points out that management needs to give shareholders a vision of a "pot of gold at the end of the rainbow" or else shareholders will look for someone outside the company to present that picture. This is business. Therefore, making a lot of money in the future as a vision appears to be every bit as important as running the company competently.
When Iger retired the first tim e and Bob Chapek took over as CEO, the one thing lacking was a long-term vision as to where the company should go. That more than anything else likely caused the proxy battle in the first place....
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Disney: The Mouse House Runs Up The Score