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The continued proxy battle between Disney CEO Bob Iger and activist investor Nelston Peltz simply took one other flip.

Peltz, co-founder of the asset administration agency Trian Companions, has secured a serious endorsement from the proxy advisory agency Institutional Shareholder Companies (ISS) in his quest to get a seat on Disney’s board. The endorsement comes lower than two weeks earlier than Disney’s annual shareholder assembly on April 3, the place traders will vote for the for firm’s board of administrators.

The agency urged shareholders assist Peltz together with 11 of Disney’s 12 nominees.

“Dissident nominee Peltz, as a big shareholder, might be additive to the succession course of, offering assurance to different traders that the board is correctly engaged this time round. He may additionally assist consider future capital allocation choices,” ISS wrote in a 34-page report obtained by Quartz that it shared with traders as we speak.

The nod by the ISS is very welcome information for Peltz: The group is outstanding efficient in backing profitable candidates for board seats. A 2023 report from Barclays discovered that about 75% of nominees endorsed by ISS find yourself getting elected.

Iger vs. Peltz

Peltz has been on a tear to snag himself — for the second time — and former Disney CFO Jay Rasulo a seat on the corporate’s board.

Trian Companions, which owns about $3.5 billion of Disney inventory, launched a 133-page paper this month outlining Peltz’s plans for the company, which embody a restructuring of management, aligning performance-based compensation with shareholder worth, and creating a technique to succeed in margins just like Netflix’s 15% to twenty% by 2027.

“[D]espite its many benefits, Disney has misplaced its manner. Disney fell from its #1 place on the field workplace, was late to enter the streaming enterprise and doubled down on linear TV on the incorrect time,” Trian mentioned in a letter despatched to Disney shareholders on Monday.

The funding agency Blackwells Capital has additionally nominated three candidates for the board.

However Bob Iger isn’t backing down but. Iger and Disney’s nominees have acquired endorsements from one other main proxy advisory firm, Glass Lewis, together with heavyweights like JPMorgan Chase CEO Jamie Dimon and nine Disney grandchildren.

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