Disney shareholders back CEO Iger, rebuff activists who wanted to shake up the company

In a significant show of support for Disney's leadership, the media and entertainment giant's shareholders voted to re-elect Robert A. Iger as chairman and CEO during the company's annual meeting on March 9, 2023. The vote came despite pressure from two activist investors, Trian Fund Management LP and Starboard Value LP, who had called for major changes at the company.

Trian and Starboard, which together own approximately 10% of Disney's outstanding shares, had proposed slates of their own candidates for the board and urged Disney to split its ESPN sports unit from its entertainment business. They argued that such a move would create more value for shareholders and improve the company's financial performance.

However, the majority of Disney's shareholders disagreed. According to preliminary voting results, Iger received approximately 67% of the votes for chairman and 64% of the votes for CEO. The board nominees put forward by Disney received an average of 85% approval.

The outcome of the vote was a clear victory for Iger and a rebuke of the activist investors' efforts to shake up the company. In a statement, Iger expressed his gratitude for the support of Disney's shareholders and reiterated his commitment to creating long-term value for them.

"I want to express my deep appreciation to our shareholders for their continued confidence in our leadership team and our strategic direction," Iger said. "We are focused on delivering innovative and engaging content across our media networks and theme park businesses, and we are confident in our ability to drive long-term growth and value for our shareholders."

The vote marks a turning point in the long-running battle between Disney and its activist investors. While Trian and Starboard have indicated that they may continue to push for change at the company, it is clear that the majority of Disney's shareholders believe that Iger and his team are the best people to lead the company into the future.

In the days leading up to the annual meeting, Disney reported strong earnings for its fiscal fourth quarter, with revenue and earnings per share coming in above analysts' expectations. The company also announced that it would be increasing its dividend by 18% and authorizing a new $14 billion share buyback program. These positive developments may have influenced the outcome of the vote and bolstered support for Iger and the board.

Despite the outcome of the vote, it is likely that Disney will continue to face pressure from its activist investors and the broader market to deliver strong financial performance and adapt to changing consumer preferences and technological trends in the media and entertainment industry. However, with Iger at the helm and the support of a majority of its shareholders, Disney is well-positioned to continue its growth and innovation in the years ahead.