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Disney (SAY) CEO Bob Iger said Tuesday he is doing his best not to let the ongoing proxy battle with activist investor Nelson Peltz distract his attention from turning around the company.
“I work very hard not to get distracted, because when I’m distracted, everyone who works for me is distracted and that’s not a good thing,” Iger said at the Morgan Stanley Media and Telecommunications Conference Tuesday.
Last year, Peltz and his hedge fund Trian Fund Management renewed its efforts to reshuffle the company’s board of directors as the stock price hit a multi-year low. Disney is grappling with challenges including the decline of its linear TV business, slower growth in its parks business and losses in streaming.
Iger highlighted the complexity of managing Disney’s multifaceted business as various segments like streaming face increasing disruption.
“It is [a business] it requires not only a significant amount of knowledge, but also an enormous amount of time and concentration,” he said. “This campaign is somehow designed to distract us. … It takes time and focus to generate what we need for shareholders.”
Iger’s comments come after Trian published a 130-page white paper Monday, blaming the board for Disney’s underperformance and accusing its members of lacking “focus, alignment and accountability.”
Peltz is currently seeking board seats for himself, alongside former Disney CFO Jay Rasulo. If the proxy battle continues to the vote, a shareholder meeting scheduled for April 3 will ultimately determine the board’s fate.
Another investment firm, Blackwells Capital, supports the company’s current board but has urged shareholders to vote for its three nominees.
Disney shares rallied from record lows with a gain of about 11% year over year.
Since the start of 2024, shares have climbed about 25%, outpacing the S&P 500’s 6% rise over the same period.