Disney Boardroom Battle Was Not Targeted At Bob Iger, But Holding The Board Accountable, Says 13D Founder — Jeffrey Sonnenfeld Disagrees

On Tuesday, while appearing on CNBC’s “Last Call,” Ken Squire, the founder and president of 13D Monitor, shared his perspective on the boardroom battle at Walt Disney Co. DIS, saying it was not targeted at Bob Iger.

What Happened: Squire said that Nelson Peltz, the nominee from Trian and Blackwells, was not targeting Iger’s leadership but holding the company's board accountable.

“This was never about Bob Iger not being a successful CEO, not being a good visionary. Nelson Peltz was not opposing Bob Iger,” Squire said, adding, “He might have withheld his votes against him, but he did not recommend that other shareholders withhold their votes against them.”

Squire then went on to say that the fight was all “about long-term. It’s about succession. It’s about holding the board accountable. It’s not about this quarter or last quarter.”

See Also: Disney’s Largest Shareholder Vanguard Sides With Management In Proxy Fight Against Nelson Peltz

However, Jeffrey Sonnenfeld, a management expert and professor at Yale School of Management, disagreed with Squire’s assessment. “Right now, on this set, you can’t name a stronger board in corporate America,” Sonnenfeld said.

"This was never about Bob Iger not being a successful CEO… Nelson Peltz was not opposing Bob Iger," says @13DMonitor's Ken Squire after $DIS won its boardroom battle. "It's about long-term. It's about succession. It's about holding the board accountable." pic.twitter.com/n5xNmSna0w

— Last Call (@LastCallCNBC) April 3, 2024

Why It Matters: The Walt Disney Company emerged victorious in a boardroom battle against activist investors at its annual meeting. The newly elected board members are: Iger, Mary T. Barra, Safra A. Catz, Amy L. Chang, D. Jeremy Darroch, Carolyn N. Everson, Michael B.G. Froman, James P. Gorman, Maria Elena Lagomasino, Calvin R. McDonald, Mark G. Parker and Derica W. Rice.

This development came after Peltz nominated himself and former Walt Disney Co. CFO Jay Rasulo to Disney's board as part of his proxy fight with the entertainment giant. His nomination came after Disney dismissed the board nominees of activist shareholders.

Previously, Peltz called out Iger and the Disney board for underperforming. “This board, from Bob [Iger] to every independent director, has underperformed the S&P on every measure: one year, three years, five years, 10 years,” he said in January.

Earlier, Tesla and SpaceX CEO Elon Musk also said that he believes activist investor Peltz should be on Disney’s board of directors. “While I don’t own any Disney shares today, I would definitely buy their shares if Nelson were elected to the board. His track record is excellent.”

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Read Next: Bob Iger Vs. Nelson Peltz: A Former Marvel Boss Joins War Over Disney Board

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