FX.co ★ Advisory Firm ISS Backs Nelson Peltz For Disney's Board

Institutional Shareholder Services (ISS), a leading proxy advisory firm, has endorsed activist investor Nelson Peltz for a seat on the Walt Disney's board of directors. ISS stated that Peltz, being a significant shareholder, could offer assurance to fellow investors that the succession process is efficiently handled this time. He was also seen as a valuable asset in assessing future capital allocation decisions.

While ISS acknowledged the strategic measures implemented by Walt Disney's current CEO, Bob Iger, the firm also emphasized the need for a management shift. This is due to the company's less than stellar performance in recent years and ongoing succession challenges.

This endorsement follows a request by Peltz's firm, Trian Management Fund, for shareholders to nominate both Peltz and former Disney CFO, Jay Rasulo, to Disney's board at the annual general meeting scheduled for April 3rd.

In addition to this, ISS suggested not voting for current Disney board member Maria Elena Lagomasino. They argued that while they had no qualms about Rasulo's ability to perform as an objective director, his potential presence might lead to unnecessary discord within the board.

In reaction to ISS's recommendations, Disney disputed the conclusions drawn, stating, "We firmly believe that ISS erred in its recent report concerning the addition of Nelson Peltz to the board". Disney also criticized the perception that there was a lack of a diverse skillset and experience among its board members.

Earlier this week, Glass Lewis, another influential proxy advisory firm, backed Disney's nominees for the board. It is important to note that the recommendations from both Glass Lewis and ISS significantly sway the decisions of institutional shareholders.