By Dean Seal
Disney is urging investors to ignore an influential proxy-advisory firm's recommendation to add activist investor Nelson Peltz to its board.
The entertainment giant said Thursday that the recommendation by Institutional Shareholder Services to vote for all but one of Disney's 12 proposed board members, and give Peltz the twelfth seat, could threaten the company's ongoing turnaround.
ISS made its recommendation earlier on Thursday, notably declining to endorse ex-Disney finance chief Jay Rasulo as a board member. Both Peltz and Rasulo have been nominated for seats by the Peltz's Trian Partners in one front of the proxy war being waged for Disney's board.
The firm also recommended voting against three nominees put forth by the smaller activist investor Blackwells Capital.
Instead, ISS urged investors to vote for each member of Disney's proposed slate except Maria Elena Lagomasino, a director since 2015 and member of Coca-Cola's board since 2008.
Disney responded that voting for Peltz instead of Lagomasino ignores the governance expertise and financial leadership that she brings to the table.
"ISS fails to acknowledge the breadth of perspective and expertise Ms. Lagomasino adds to the board," Chairman Mark Parker said.
Disney told investors to instead adopt the recommendation of Glass Lewis, the other major proxy adviser that endorsed its full slate of nominees earlier this week.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
03-21-24 1201ET
