Disney has won a boardroom battle with critics who accused the media giant of bungling its streaming strategy and losing its creative spark.
Activist investors, including Trian Management's Nelson Peltz, had sought a seat on Disney's board of directors, saying it was too close to Disney's management.
Both companies pledged to drive priorities such as increasing profits.
A majority of shareholders voted to retain the company's current board of directors.
Disney announced at its shareholder meeting on Wednesday that director candidates were selected by “significant margins.” Only 31% of the votes cast supported Mr. Peltz to win the seat, according to a person familiar with the results.
But the battle has raised sharp questions about Disney's struggling film and television business and cast a shadow over the performance of longtime leader Bob Iger.
“Our hope is for Disney to once again create great content and delight consumers, and for Disney to create sustainable long-term value for its shareholders,” Peltz said at Wednesday's shareholder meeting. ” he said.
Mr. Peltz is known for his battles with large corporations such as fast-food chain Wendy's and Procter & Gamble, which makes brands such as Pampers and Vicks.
He criticized Disney for being too slow to act as pay-TV subscribers began losing money in 2015 and Iger's decision to buy a huge chunk of Rupert Murdoch's media empire in 2019. He said that the big bet did not pay off.
Tryon and another firm, Blackwells Capital, argued that the board overpaid executives and neglected its responsibility to select a new chief executive.
They also pointed out that a series of films have failed to meet expectations at the box office and called for a review of Disney's studio management.
The debate coincided with pressure from right-wing activists who accused Disney of being “woke.”
Concerns about how Disney is handling culture war issues led to several questions from shareholders at Wednesday's meeting, as well as a separate shareholder proposal focused on Disney's political and charitable giving, as well as A policy regarding gender employees was also rejected.
Disney urged shareholders to vote against these proposals and support the current board of directors. He said the new faces could disrupt the company's progress.
“As we come together today, we stand on a stronger foundation,” Iger said at a meeting after the results were announced. “We have turned a corner and entered a new and positive era for the Walt Disney Company.”
Iger stepped down as CEO in 2020, but Disney's board abruptly reappointed him as boss in 2022 following complaints about the company's streaming business and other issues. He expelled his successor.
Immediately after his return, Mr. Iger announced a reorganization and thousands of job cuts aimed at improving the company's profits. He is currently scheduled to retire at the end of 2026.
“Now that the distracting proxy fight is over, we are 100% focused on our most important priorities: growth and value creation for our shareholders and creative excellence for our consumers,” said Iger. “I hope to do so,” Iger said in a statement after the statement. victory.
The investor battle was costly for both sides.
Trian estimated it would spend $25 million to heavily promote its social media platforms and win over shareholders in advertising aimed at general investors, while Disney claimed it spent up to $40 million. .
Mr. Iger won, gaining support from major shareholders including Star Wars creator George Lucas, Steve Jobs' widow, Laurene Powell Jobs, and members of the Disney family.
In a statement after his efforts received a last-minute nod from Elon Musk, Peltz said he was disappointed in the results but was “proud” of his campaign's influence.