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NEW YORK – Trian Fund Management, LP is an investment company and one of the major shareholders of The Walt. disney The company (NYSE: NYSE:) has named Nelson Peltz and Jay Laslo to the Disney Board of Directors. The nominations come as Tryon is actively opposing the re-election of two of Disney’s current directors ahead of the company’s annual shareholder meeting scheduled for April 3.
Mr. Tryon has criticized Disney for what he described as a “scorched earth strategy” and for straying from the company’s own performance issues. The investment firm, which owns $3.5 billion worth of Disney stock, said Disney stock had underperformed during the terms of the two directors it is seeking to replace, Michael BG Froman and Maria Elena Lagomasino. It is claimed that
Tryon claims that Disney’s stock price had fallen more than 20% and the company’s earnings per share had declined since he started advocating change.
In response to reports from Disney’s side, Tryon expressed disappointment with the rhetoric used, saying it was distracting from the real issues and accountability. Over its 20-year history, Trian highlights its track record of working with more than 20 publicly traded companies to improve operations and drive growth.
Mr. Tryon also takes issue with Disney’s depiction of its performance, suggesting that the company selectively presents price-to-earnings ratios and omits periods of underperformance. The company notes that Disney compares its performance to weaker competitors rather than the broader peer group.
Mr. Tryon also questions the credibility of the public support Disney receives from parties with financial ties to the company.
Investment firms expressed concerns about Disney’s strategic decisions, including its handling of the Fox acquisition, delays in media profits and executive compensation. Tryon believes that to improve Disney’s performance, the company needs new directors like Peltz and Laszlo who are committed to setting ambitious goals and holding management accountable.
This article is based on a press release from Trian Fund Management, LP.
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