As the PR war between Disney and Nelson Peltz's Trian Partners intensifies ahead of the upcoming shareholder meeting on April 3, proxy voting advisor Glass Lewis has thrown its support behind Disney and CEO Bob Iger in their fight for control of the Hollywood studio.
In a report released on Monday, Glass Lewis recommended that Disney's shareholders vote for the studio's proposed boardroom nominees and 'withhold' on the board nominees put forward by Trian Partners and Blackwells.
The report highlighted the diverse skillsets of Disney's board nominees, the credibility of the succession planning process, recent changes to the board and compensation program, and the efforts to enhance growth and value creation to position Disney for the future.
Mark Parker, chairman of The Walt Disney Company board of directors, expressed confidence in the board nominees and the strategic direction of the company in response to Glass Lewis's recommendation.
Trian Partners and Blackwells Capital have submitted their own board nominees to be voted on by shareholders as part of the ongoing proxy fight with Disney. Trian's 130-page whitepaper criticized Disney's current board of directors as the 'root cause of Disney's underperformance' in recent years.
However, Glass Lewis noted that Trian's proposed new process for succession planning may not offer a clear advantage over Disney's existing efforts, which are supported by a special board committee composed of credible members.
Third-party firms like Glass Lewis play a significant role in influencing institutional investors such as Blackrock, Vanguard, and State Street. Glass Lewis emphasized the importance of supporting Disney's trajectory and cautioned against backing alternate solicitations that could be less beneficial to Disney's future success.
