Activist investor Nelson Peltz is urging Walt Disney shareholders to dump CEO Michael Froman.
Trian did not explain in the letter why Froman had been chosen as a target among the Disney directors, but suggested that Peltz was more qualified for the service.
Froman has been a Disney director since 2018. He is also Vice Chair, Strategic Growth at Mastercard and a former US sales representative.
Trian Fund Management, Peltz’s hedge fund, has also increased its support with its website www.restorethemagic.com, where current Disney shareholders can vote for Peltz and hold back Froman. Trian is also promoting the campaign through the company’s social media channels.
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On Thursday, Trian Partners sent a letter to Walt Disney shareholders to advocate for Peltz, while suggesting the billionaire investor was better suited to serve.
“Shareholders need someone in the boardroom who is experienced enough, committed enough and objective enough to insist that Disney realize its full potential,” the letter reads.
Disney has not responded to requests for comment from FOX Business.
In the letter, Trian also leveled criticism at the entire Disney board, blaming it for its poor stock performance in 2022, while arguing that board members failed to “create a culture of accountability.”
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The board of directors failed to properly plan for Bob Iger’s successor as chief executive, owned very few shares and “did not heed constructive input from shareholders,” the letter said.
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|DIS||THE WALT DISNEY CO.||112.57||+3.12||+2.85%|
Disney directors, which include CEOs of automaker General Motors, biotechnology company Illumina and sportswear company Lululemon Athletica, are too distracted to focus on Disney, according to the letter.
Trian currently owns a roughly $1 billion stake in The Walt Disney Company.
Disney reports first-quarter results on February 8th.
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Reuters contributed to this report.