According to sources, hedge fund billionaire Nelson Peltz divested his entire Disney shareholding after his proposal to restructure the board was overwhelmingly rejected.
As reported by CNBC, Peltz, father of actress Nicola Peltz-Beckham, who is married to Brooklyn Beckham, reportedly earned over $1 billion from the sale, which he executed at “nearly 120 dollars a share.”
The share price indicates he sold during an April shareholder meeting where his bid to gain control of the board failed.
Hedgefund Trian Partners, funded by Peltz, had recommended him for a board position. However, at the April 3 annual meeting, other shareholders firmly opposed their proposal.
The vote was driven by Peltz’s claims that the board lacked due diligence in its CEO succession plans, particularly regarding Bob Chapek, the former head of parks and Bob Iger’s chosen successor in 2020.
Nelson continues criticism after Iger’s return as CEO
After Chapek’s dismissal in November 2022, Iger was reinstated as CEO. Following last month’s vote, Peltz continued to criticize the board, warning them to meet his expectations.
“I hope this is not a repeat of last year where we stepped back, gave management a chance, and the stock declined,” he told CNBC.
“Whether we remain invested in Disney or not, we don’t make those kinds of announcements,” he added.
As per CNBC, Peltz’s Trian Partners sought the removal of directors Maria Elena Lagomasino and Michael Froman, citing ongoing share underperformance.
Nevertheless, Lagomasino defeated Peltz by a 2-to-1 margin, and all board nominees were re-elected.
Peltz, as an activist investor and Brooklyn Beckham’s father-in-law, invests in undervalued businesses and advocates for internal reforms.
