Markus Parker
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The Walt Disney Company on Wednesday named Nike CEO Mark Parker as its next chief executive officer, while announcing that it opposes an attempt by activist investor Nelson Peltz to join the board.
Disney’s announcements come nearly two months after Peltz’s Trian Fund Management acquired an approximately $800 million stake in the company and began seeking a seat on its board of directors. Trian is reportedly looking to make operational improvements and cut costs, and has opposed the reappointment of Bob Iger as Disney’s CEO.
“While senior management at The Walt Disney Company and its board have worked with Mr. Peltz on numerous occasions over the past several months, the board does not endorse Trian Group’s nominee and is recommending that shareholders not endorse his nominee and instead vote for all of the company’s nominees ‘ Disney said in its release on Wednesday.
Peltz will respond with a filing later Wednesday, CNBC’s David Faber reported.
Parker succeeds Susan Arnold, whose 15-year tenure will expire after the next annual general meeting of shareholders. The date for the meeting has yet to be announced. Disney’s board of directors will be reduced to 11 members following Arnold’s departure.
“During his four decades at Nike, Mark has led one of the world’s most recognized consumer brands through various market developments and a successful CEO transition, and he is uniquely positioned to chair the Disney Board of Directors at this stage of transformation,” said Arnold in a statement Wednesday. Parker has been a member of Disney’s board of directors for seven years. Nike did not immediately respond to a request for comment.
Iger’s impressive return in November came with the promise of a two-year stint that would spark renewed growth. The CEO also plans to help find his next successor after his previously handpicked successor Bob Chapek’s tenure fell apart.
Earlier in November, Disney announced company-wide cost-cutting measures, including a ban on all but essential work travel and a freeze on new hires for all but a few critical positions. Iger stuck to that hiring freeze when he returned to the helm of the company later that month.
“Mr. Iger’s mandate is to use his two-year tenure and extensive experience in the industry to adapt the business model to the changing media landscape, rebalancing investments and revenue opportunities while re-focusing on the creative talent that The Walt has spawned Disney Company the envy of the industry,” the company said.