Billionaire investor Nelson Peltz has set his sights on Disney in what is turning into a spectacular executive battle over one of America’s most famous companies.
Peltz is already an investor in the entertainment giants, but after accusing it of wasting money in recent years while battling a super bright reputation that turns off families, he now wants a stake.
On Thursday, Peltz – whose daughter Nicole is married to Brooklyn Beckham – launched a full-scale attack on the company with a MAGA-style campaign called “Restore The Magic.”
Through dedicated pages on Facebook, Instagram, and Twitter, and in an SEC filing, Peltz pledged to bring “a leadership mindset” to the Disney boardroom — currently ruled by Bob Iger.
Nelson Pelz laid out his case for Disney on CNBC this morning. In SEC filings, he says he can infuse the company with a “leadership mentality” that he says wastes money
Disney CEO Bob Iger has yet to comment publicly on Peltz’s bid for a seat on the board
He said the company had been guilty of “poor corporate governance” and issuing “over the top” compensation packages for too long.
Peltz — who is worth $1.4 billion and currently owns 0.5 percent of Disney through his firm Trian Partners — is known for his no-nonsense approach and isn’t afraid of being forced into a company’s board of directors.
In an interview on CNBC’s Squawk Street on Thursday after filing his SEC filings, he was playful when asked about his intentions for Disney.
‘Why not? We have skin in it,” said the 80-year-old business titan.
Disney hasn’t publicly responded to his request yet, but Peltz claims the company offered him a seat on the board as a “spectator” — an offer he declined.
“They said, ‘You can come to the meetings.’ So they want my contribution to the operation, but they don’t want my contribution to the management of the company.
“So they don’t want me to have a voice saying they even think I have something to add.”
In the past three years, the once-pristine company has sunk in most Americans’ estimates for intimidating Wake-up activism.
It applied warnings to classic films it now deems offensive to audiences, stripped Minnie Mouse of her skirt and replaced it with a pantsuit at the Paris theme park, and threatened to close in protest at local politicians and theirs from the state of Florida to withdraw dealing with gender and sex laws.
Peltz’s Trian Partners launched a full-scale attack on Disney today, with a website and multiple social media pages dedicated to its bid for a seat on its board of directors
The presentations and websites explained how Disney underperformed the S&P 500 — an index average of 500 other American companies
Trian says it doesn’t want to replace Bob Iger immediately, but in two years
The Trian offering launched a Twitter account, a Facebook page, and an Instagram page
Trian’s SEC filing Thursday morning formally seeking a board seat for Peltz
While Peltz has yet to take a stand against Disney’s open work, he has warned companies against making political statements in the past, and “poor corporate governance” is among his top complaints.
In the past, Peltz has infuriated the Unilever CEO over one of his brands, Ben & Jerry’s, and his decision to stop selling ice cream in Palestine to protest the conflict with Israel.
According to FT, Peltz warned Unilever CEO Alan Jope that “no company has a place for such political statements.”
Peltz had quietly built up a whopping 1.5% stake in Unilever. After he joined the board, the company’s stock soared.
Peltz said Thursday that he’s been disappointed with Disney’s books in recent years and believes he can bring them into shape.
“Peltz has a pirate spell and a velvet glove. But don’t confuse the iron fist. He tirelessly pursues his own goal, namely value creation
Cadbury CEO Roger Carr
“We look at a company and find that it is the wealthiest consumer company in the world. And we love it. That’s why we’re here.
‘However, the 1, 3, 5, 10 year total shareholder return has significantly underperformed the S&P and underperformed the proxy competitors the company has selected.
“They abolished the 57-year dividend. Fifty-seven years of dividends and now it’s gone.
“And now they want to tell us that everything will be fine. We think we can help. We have a record of helping.
“On every board I’ve served on — and I’ve served on more boards than anyone I know — this company has outperformed the S&P by 900 basis points annually.
“I just need to reason with these people and explain to them what they did wrong or what opportunities they are missing,” he said.
While Peltz may portray his offer of advice in a friendly manner, previous colleagues have described him as “relentless.”
“Peltz has a pirate spell and a velvet glove. But don’t confuse the iron fist. He tirelessly pursues his own goal, namely value creation.
“He always prefers to win you over with his enthusiasm and optimism
“But like any real East New York boy, he won’t shy away from a fight if it’s the only way forward,” Cadbury’s Roger Carr told the FT.
The 80-year-old business titan Peltz is worth an estimated $1.8 billion. He’s known for picking underperforming companies, inserting himself into them to make them more profitable, and then selling his shares
Peltz with his daughter Nicola, 28, and his wife Claudia, 67
Nicola is now married to Brooklyn Beckham. They were shown in Hollywood last night
Peltz convinced Cadbury’s to separate its beverages from its confectionery. He performed similar turnarounds at Snapple, Heinz, and Procter & Gamble.
In his rebuke to Disney, he said he was put off by the “over-the-top” compensation packages offered by some of his top executives.
His business mantra is “Increase sales, reduce costs” – according to FT, he has this slogan printed on mugs at his company Trian.
In a recent interview with Bloomberg, Peltz explained that the companies Trian is interested in are “boring.”
Turned off by the virtuous, culture-shaping titans of the tech world, he says he’s more interested in operations and cash.
“Although we will be in a recession, I think cash flow, stability and quality businesses will be valued again when this is all over.
“These are the types of companies we invest in.
“These are boring companies, but they are really wonderful money-making companies,” he said.
It may be no coincidence that Peltz’s daughter, Brooklyn’s wife Nicola, is an aspiring actress.
Her most recent role is in Welcome to Chippendales, a series on Disney-owned streaming giant Hulu.