1/3
Jan. 11 (UPI) — Disney named a new board chairman on Wednesday while continuing to fend off billionaire investor Nelson Peltz’s bid to join.
Nike executive Mark Parker was elected chairman following an annual meeting of shareholders, Disney said in a press release. Parker has been a board member for seven years and is the executive chairman of Nike.
Parker succeeds Susan E. Arnold, whose 15-year term limit as chairwoman precluded her from seeking re-election. The board will be reduced to 11 members sans Arnold.
“Mark Parker’s vision, incredible depth of experience and wise counsel have been invaluable to Disney, and I look forward to continuing working with him in his new role, along with our other directors, as we chart the future course for this amazing company,” said Robert A. Iger, Chief Executive Officer of The Walt Disney Company.
“On behalf of my fellow Board members and the entire Disney management team, I also want to thank Susan for her superb leadership as Chairman and for her tireless work over the past 15 years as an exemplary steward of the Disney brand.”
The board nominated several of its members for re-election, while recommending shareholders not support the nomination of Peltz. Trian Group nominated Peltz, who founded Trian Fund Management. L.P. in 2005. The group also proposed amendments to the board’s bylaws.
Peltz is considered an activist investor who seeks to gain significant influence over how The Walt Disney Company operates. According to CNBC, Peltz believes the company has “lost its way” as its financial performance has weakened in the past year.
Disney plans to file a proxy statement with the U.S. Securities and Exchange Commission, as does Trian Group, setting the stage for a corporate tussle over the future of the company.
“The Walt Disney Company remains open to constructive engagement and ideas that help drive shareholder value,” Disney said.
“While senior leadership of The Walt Disney Company and its Board of Directors have engaged with Mr. Peltz numerous times over the last few months, the Board does not endorse the Trian Group nominee, and recommends that shareholders not support its nominee.”
