Disney (DIS) CEO Bob Iger said Tuesday that he is trying his best to not let an ongoing proxy battle with activist investor Nelson Peltz divert his focus on turning around the business.
“I am working really hard to not let this distract me because when I get distracted, everybody who works for me is distracted and that’s not a good thing,” Iger said at Morgan Stanley’s media and telecom conference on Tuesday.
Last year, Peltz and his hedge fund Trian Fund Management renewed a push to shake up the company’s board as the stock price hit multiyear lows. Disney has been grappling with challenges that include a declining linear TV business, slower growth in its parks business, and losses in streaming.
Iger pointed to the complexities of running Disney’s multi-faceted business as various segments like streaming face increased disruption.
“It’s [a business] that takes not only a significant amount of knowledge, but a tremendous amount of time and focus,” he said. “This campaign is in a way designed to distract us. …Time and focus is necessary to generate what we need to generate for the shareholders.”
Iger’s comments come after Trian published a 130-page white paper on Monday, blaming the board for Disney’s underperformance and criticizing its members of lacking “focus, alignment and accountability.”
Peltz is currently seeking board seats for himself, along with former Disney CFO Jay Rasulo. If the proxy battle continues to a vote, a shareholder meeting set to take place on 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 as additions to it.
Disney’s stock has fought its way back from record-lows with shares up about 11% year over year.
Since the start of 2024, shares have climbed about 25%, outpacing the S&P 500’s 6% rise over that same time period.