Iger Won His Proxy Battle, but the “Woke” War Still on at Disney
During his first 15 years running Walt Disney Co., Bob Iger had a magical touch. Acquisitions of Pixar Animation, Marvel Entertainment and Lucasfilm turbocharged the company’s creative engines. Movies minted billions of dollars, sports king ESPN spawned staggering profits, and Disney’s theme parks teemed with delighted guests. Iger embraced the role of celebrity chief
executive, flirting briefly with a bid for president. But no longer.
In the year and a half since Iger returned as Disney CEO to replace his successor, Bob Chapek, he has been trying to fix one problem after another in nearly every corner of the Burbank behemoth. Disney’s organizational structure was broken. Expenses had soared. Disney’s faithful fans are furious about expensive and bad Marvel and Star Wars shows and movies, and about a series of price hikes at the theme parks. Then, in May, 11,500 screenwriters went on strike, joined later by 160,000 actors. But most of all, Igers has two main battles to fight. One is against activist investor Nelson Peltz’s Trian Partners LP, and one against Florida’s governor, presidential hopeful Ron DeSantis, who is taking swipes, saying the company was too “woke” and pushing a left-leaning agenda.
Last Wednesday at the company’s annual shareholder meeting, the CEO managed to secure the first front, when investors voted to re-elect all 12 of current board members, keeping Peltz and his ally, former Disney Chief Financial Officer Jay Rasulo, off the board. The vote results ended the multimillion-dollar, mud-slinging battle launched by the billionaire CEO of Trian: Iger received 94% of votes cast, while Disney director Maria Elena Lagomasino, whose seat Trian contested, won 63%. Peltz nabbed just 31%.
With the proxy contest behind him, the big boss at the House of Mouse can focus on disentangling itself from the partisan discourse. The company’s shareholder meeting on Wednesday made it clear that this is the toughest challenge to overcome.
Apart from Trian’s proposal and one from Blackwells Capital, also seeking seats on the board, three of the other four shareholder proposals were related to political and social issues. One
proposal criticized Disney’s contributions to anti-choice politicians. Another accused Disney of harming transgender individuals by providing health benefits covering gender-affirming care. The third criticized Disney’s donations to LGBTQIA+ organizations as extreme and out of touch with the beliefs of many Americans.
While not as impactful as Peltz’s campaign, these proposals highlight the political challenges facing US businesses. Some Disney shareholders believe the company is alienating consumers by not adhering to its liberal values, while others argue that promoting these values, through its content and supported causes, is what’s causing consumer alienation. The stakes are high and represent the critical crossroads where the country’s culture stands.
Source: Bloomberg https://www.bloomberg.com/opinion/articles/2024-04-08/disney-and-bob-iger-still-face-the-war-against-woke?embedded-checkout=true
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During his first 15 years running Walt Disney Co., Bob Iger had a magical touch. Acquisitions of Pixar Animation, Marvel Entertainment and Lucasfilm turbocharged the company’s creative engines. Movies minted billions of dollars, sports king ESPN spawned staggering profits, and Disney’s theme parks teemed with delighted guests. Iger embraced the role of celebrity chief
executive, flirting briefly with a bid for president. But no longer.
In the year and a half since Iger returned as Disney CEO to replace his successor, Bob Chapek, he has been trying to fix one problem after another in nearly every corner of the Burbank behemoth. Disney’s organizational structure was broken. Expenses had soared. Disney’s faithful fans are furious about expensive and bad Marvel and Star Wars shows and movies, and about a series of price hikes at the theme parks. Then, in May, 11,500 screenwriters went on strike, joined later by 160,000 actors. But most of all, Igers has two main battles to fight. One is against activist investor Nelson Peltz’s Trian Partners LP, and one against Florida’s governor, presidential hopeful Ron DeSantis, who is taking swipes, saying the company was too “woke” and pushing a left-leaning agenda.
Last Wednesday at the company’s annual shareholder meeting, the CEO managed to secure the first front, when investors voted to re-elect all 12 of current board members, keeping Peltz and his ally, former Disney Chief Financial Officer Jay Rasulo, off the board. The vote results ended the multimillion-dollar, mud-slinging battle launched by the billionaire CEO of Trian: Iger received 94% of votes cast, while Disney director Maria Elena Lagomasino, whose seat Trian contested, won 63%. Peltz nabbed just 31%.
With the proxy contest behind him, the big boss at the House of Mouse can focus on disentangling itself from the partisan discourse. The company’s shareholder meeting on Wednesday made it clear that this is the toughest challenge to overcome.
Apart from Trian’s proposal and one from Blackwells Capital, also seeking seats on the board, three of the other four shareholder proposals were related to political and social issues. One
proposal criticized Disney’s contributions to anti-choice politicians. Another accused Disney of harming transgender individuals by providing health benefits covering gender-affirming care. The third criticized Disney’s donations to LGBTQIA+ organizations as extreme and out of touch with the beliefs of many Americans.
While not as impactful as Peltz’s campaign, these proposals highlight the political challenges facing US businesses. Some Disney shareholders believe the company is alienating consumers by not adhering to its liberal values, while others argue that promoting these values, through its content and supported causes, is what’s causing consumer alienation. The stakes are high and represent the critical crossroads where the country’s culture stands.
Source: Bloomberg https://www.bloomberg.com/opinion/articles/2024-04-08/disney-and-bob-iger-still-face-the-war-against-woke?embedded-checkout=true
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