Activist investor Nelson Peltz took aim at Disney CEO Bob Iger after the company revealed he would be succeeded by Experiences chairman Josh D’Amaro.<\/b>
\nActivist investor Nelson Peltz took aim at Disney CEO Bob Iger after the company revealed he would be succeeded by Experiences chairman Josh D\u2019Amaro.
Peltz notably launched two separate proxy fights against Iger while he was CEO in an effort to obtain seats on Disney\u2019s board \u2014 both of which ended up failing. During the second proxy battle, one of the key issues Peltz targeted was the Disney board\u2019s struggles with CEO succession after Iger\u2019s previous successor-turned-predecessor Bob Chapek was ousted.
\u201cI didn\u2019t think there was any choice, because Iger needs a reason to stay on,\u201d the Trian Fund Management CEO told The Wall Street Journal when asked about the Disney board selecting D\u2019Amaro. \u201cIf he put the person in charge of entertainment as the CEO, he wouldn\u2019t have an excuse to stay on.\u201d
Iger, whose contract is set to expire at the end of 2026, will transition into the role of senior advisor and remain a board member, subject to the vote at Disney\u2019s annual meeting on March 18. He will step down from the executive committee of the board after the annual meeting.
Peltz predicted that Iger will eventually put out a statement saying D\u2019Amaro \u201cdoesn\u2019t know anything about the movie business \u2026 therefore, I\u2019m going to stay on and guide him.\u201d
\u201cWatch that post. Okay, see if I\u2019m wrong,\u201d he concluded.
A Disney spokesperson did not immediately return TheWrap\u2019s request for comment on Peltz\u2019s remarks.
The latest search for a successor was led by Disney board chairman James Gorman, who successfully led his own succession process after an 18-year run as Morgan Stanley\u2019s CEO, as well as board directors Mary Barra, Jeremy Darroch and Calvin McDonald.
In addition to D\u2019Amaro, other internal candidates under consideration included Disney Entertainment co-chairs Dana Walden and Alan Bergman and ESPN chairman Jimmy Pitaro. Along with D\u2019Amaro\u2019s promotion, Walden was upped to president and chief creative officer.
\u201cWhat impressed us about Josh is he\u2019d obviously had great experience running a huge part of the company. I would put that in the necessary but not sufficient bucket. Some people interpret that as, \u2018all that matters is parks,\u2019 but that\u2019s ridiculous,\u201d Gorman told TheWrap in an interview on Tuesday. \u201cYou want somebody who has run a related business to what you do. You\u2019ve got to be fit for the kind of business that you\u2019re running and he demonstrated that. But he also demonstrated an innate curiosity about all the changes taking place in gaming, in AI, in studio production.\u201d
He added that D\u2019Amaro \u201creally understands the importance of storytelling and IP,\u201d touting the expansion of Disney\u2019s theme parks across the globe, including its plans to open a new theme park in Abu Dhabi, and said that he has a \u201ctremendous respect for Hollywood and the movie industry and talent.\u201d
\u201cYou want personal resilience. You want decision making ability. You want good personal values. So he checks a lot of boxes. Now he\u2019s got to learn how to be CEO,\u201d Gorman continued. \u201cBut, honestly, he\u2019s a polymath in abilities would be the way I describe it and I think the board was super impressed by that.\u201d
As for Walden, Gorman praised her creative instincts, decision-making and connections across the entertainment industry.
\u201cDana\u2019s a power and I think she\u2019ll be enormously helpful to Josh,\u201d Gorman said. \u201cEvery CEO needs a team that works well with them. When I was CEO [at Morgan Stanley], I had presidents to work with me and give me some leverage and help supplement some of the areas I knew less well and give time to grow into them. She\u2019s going to be great. The essence of Disney is making magical experiences and we want to focus on that across the whole of the company, bringing the best of our creative talent to the whole company, so that\u2019s why she was given that broader role.\u201d
Disney stock, which closed down 0.22% at $104.22 as of Tuesday\u2019s close, has fallen 8.6% in the past month, 12.6% in the past six months, 8.5% in the past year and 43% in the past five years.
\u201cThe stock\u2019s cheap, it\u2019s trading 15 times earnings,\u201d Gorman said. \u201cThere is unlimited opportunity at this company. We have unbelievably good buzz.\u201d<\/p>\n