Disney CEO Bob Iger has picked up a huge ally in his battle with activist investor Nelson Peltz: Walt Disney’s family.
The descendants of the legendary company founder as well as the family of brother Roy Disney have released a pair of letters to shareholders, encouraging them to stay the course and ignore the demands of Peltz and Trian Fund Management at the April annual meeting.
Peltz is seeking two board seats, saying he’s unhappy with Disney’s stock performance and demanding a clear succession plan for Iger, who has said he will retire in 2026. He’s also looking to cut costs, adjust executive compensation levels, and bring back the stock dividend.
The letters by the Roy Disney heirs call Peltz and other activists “wolves in sheep’s clothing, just waiting to tear Disney apart if they can trick shareholders into opening the door for them.” Disney, they add, is “not a company that makes widgets—it makes magic. And it takes a special group of leaders with a deep respect and understanding for this tradition to develop the kinds of incredible experiences.”
Among the family members signing the letter was Abigail Disney, who has harshlycriticized Iger in the past.
The letter from Walt’s family backed Iger, saying he “has grown this company in a modern world, and he continues to maintain a balance of creativity and profit.”
Peltz made another attempt to get on Disney’s board of directors a year ago, but relented after the company unveiled plans to cut $5.5 billion in costs, which led to 7,000 layoffs and changes to the streaming service.
Disney has said Peltz does not have the adequate experience to sit on the company’s board, since he largely comes from the consumer packaged goods business, rather than media or tech.
Roy Disney’s heirs were a bit more direct in their criticisms.
“Disney stories are filled with heroes and villains,” they wrote. “We know who the villains are in this story, and we know they cannot be entrusted with protecting this company’s rich legacy or guiding its bright future.”