JP Morgan Chase CEO Jamie Dimon supported Disney CEO Bob Iger is in his proxy battle with activist Trian Partners, CNBC’s David Faber has learned.
Dimon gave Faber the following statement about Iger:
“Bob is a first-rate executive and an outstanding leader whom I have known for decades. He has a deep understanding of the media and entertainment business and a track record of success to prove it. This is a complex industry, filled with creative talent, requiring unique experiences. and the soft skills that Bob possesses. Inappropriately placing people on the board of directors can harm the company. I don’t know why shareholders took such a risk, especially given the significant progress the company has made since Bob returned.”
Trian, led by Nelson Peltz, has launched an intense battle with Disney, asking investors to appoint him and former Disney CFO Jay Rasulo to the board of directors at the company’s annual general meeting on April 3.
On 133 pages White paper In a document released earlier this month, Peltz laid out demands for a management restructuring and an overhaul of Disney’s traditional TV channels, which he believes are in declining business. The activist also wants Disney to set a goal of achieving “Netflix-like rent” of 15% to 20% by 2027. Peltz believes Netflix is Disney’s biggest competitor.
Meanwhile, Iger is trying to streamline the sprawling media company to rein in costs and make its Disney+ streaming platform profitable. Iger carried out a broad restructuring, including thousands of layoffs.
Nelson Peltz
David A. Grogan | CNBC
Disney reported a strong quarter in February, with strong profits, narrowing streaming losses and an upbeat outlook as the company saw progress in its cost-cutting efforts. However, the report did not satisfy Peltz.
Dimon rarely gets involved in proxy battles, while JPMorgan has a history of advising Disney on defense matters.