NEW YORK - Trian Fund Management, which owns about $3 billion in Disney stock, has hired
Reevemark to support its campaign to get seats on the company board.
Reevemark's remit includes handling communications around Trian's ongoing push to get at least three board seats , which CEO Bob Iger turned down last week.
Trian, co-founded by activist investor Nelson Peltz, however, plans to launch a proxy campaign for board representation after it provided Disney the opportunity to“right the ship” last year. The announcement came following Disney's appointment of Morgan Stanley CEO James Gorman and former Sky TV chief executive as new directors.
Reevemark also worked with Trian on its proxy fight last year.
“Since we gave Disney the opportunity to prove it could 'right the ship' last February, up to our re-engagement weeks ago, shareholders lost ~$70 billion of value. Disney's share price has underperformed proxy peers and the broader market over every relevant period during the last decade and over the tenure of each incumbent director. Investor confidence is low, key strategic questions loom, and even Disney's CEO is acknowledging that the company's challenges are greater than previously believed," Trian said in a statement.
"While James Gorman and Sir Jeremy Darroch represent an improvement from the status quo, the addition of these directors will not, in our view, restore investor confidence or address the root cause behind the significant value destruction and missteps that this Board has overseen. Trian intends to take our case for change directly to shareholders," it said.
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