JPMorgan's Jamie Dimon backs Disney's Bob Iger in fight against activists

JPMorgan Chase CEO Jamie Dimon got involved in the Disney-Trian Fund Management proxy fight by voicing his support for CEO Bob Iger.

Damon He told CNBC on Wednesday that Iger was a “first-class executive and outstanding leader” who “knows the media and entertainment industry and has the successful record to prove it.”

“It is a complex industry filled with creative talent, and requires the unique experience and engagement skills that Bob possesses,” the bank CEO continued, according to the outlet. “Putting people on the board unnecessarily could hurt the company. I don't know why shareholders would take that risk, especially given the significant progress the company has made since Bob's return.”

Jamie Dimon of JPMorgan Chase said Disney's Bob Iger was “a first-class executive and an outstanding leader.” (Jenna Moon/Bloomberg via Getty Images/Getty Images)

The latest proxy battle between the entertainment giant and Trian Fund Management's Nelson Peltz began late last year. Trian and its subsidiaries own a stake in Disney worth approximately $3.5 billion.

Disney gets approval from its home city to expand park, eyes 'immersive' attractions

The company said Disney had seen “chronic underperformance” in its financial statements and blamed its board of directors. It alleged the board had failed to oversee strategy, capital allocation, culture, succession planning, executive compensation and other areas in the recently released white paper.

On top of calling for changes at the company, Trian Peltz and former Disney CFO James Rasulo were nominated as nominees to Disney's board of directors in mid-December to help “restore the magic” at the entertainment giant. She has continued to push for seats for the duo ever since.

Trian said in response to Damon's support for Iger In a press release Disney appears to be “relying on investment bankers and trading partners for public buy-in, while this campaign should focus not on the statements of highly compensated bankers and service providers, but on how shareholders can ensure good governance and oversight from the board.”

Disney tops earnings expectations, shares rise in extended trading

FOX Business also reached out to Disney regarding Dimon but had not received a response as of press time.

Disney has previously responded to Trian's series of criticisms, in addition to saying that “the strategic transformation is successful” and that its board and management are “delivering on our commitments to create superior, sustainable shareholder value.” She also questioned the qualifications of Trian's nominees compared to the board's nominees, whom she said were “best qualified” to oversee the company.

Bob Iger

Bob Iger attends a special screening of “Flamin' Hot” in Los Angeles at Hollywood Post 43-American Legion on June 9, 2023. (Axel/Bauer-Griffin/FilmMagic/Getty Images)

Peltz and Trian were previously involved in a proxy battle with Disney and Iger that ended in February of last year. Its end coincided with Disney revealing plans to reduce costs through layoffs and other measures and reshaping the company.

Disney CEO Bob Iger gets more investor action amid stock decline

In a statement this week, Disney said it was “on track” to meet its increased annual savings goal of $7.5 billion.

tape protection last It changes % changes
Dis Walt Disney Company 112.55 +0.10 +0.09%

A shareholder meeting, where the current proxy fight will come to a head, is scheduled for early April.

See also  AT&T will close its flagship store in downtown San Francisco

Disney Board nominees for this vote include Mary Barra, Safra Katz, Amy Chang, Jeremy Karrueche, Carolyn Iverson, Michael Froman, James Gorman, Maria Lagomasino, Calvin McDonald, Mark Park, Derricka Rice, and Iger.

Leave a Reply

Your email address will not be published. Required fields are marked *