Bob Iger has secured another big endorsement in Disney’s proxy fight with Nelson Peltz.
George Lucas, who is currently the largest individual investor in Disney, has backed the current board and encouraged investors to reject the proposal put forth by Peltz and Trion Fund Management, saying of Iger that “no one knows Disney better.”
Lucas owns 37.1 million shares of Disney as part of the 2012 sale of LucasArts—and he’s just the latest to reject Peltz’s argument that Disney could be on the wrong course.
“Creating magic is not for amateurs,” Lucas said in a statement. “When I sold Lucasfilm just over a decade ago, I was delighted to become a Disney shareholder because of my longtime admiration for its iconic brand and Bob Iger’s leadership. When Bob recently returned to the company during a difficult time, I was relieved. No one knows Disney better. I remain a significant shareholder because I have full faith and confidence in the power of Disney and Bob’s track record of driving long-term value. I have voted all of my shares for Disney’s 12 directors and urge other shareholders to do the same.”
Lucas’s endorsement comes less than a week after JPMorgan Chase CEO Jamie Dimon backed Iger, saying “Putting people on a Board unnecessarily can harm a company. I don’t know why shareholders would take that risk, especially given the significant progress the company has made since Bob came back.”
Peltz, in a proxy filing with the Securities and Exchange Commission, said he isn’t happy with Disney’s stock performance and is demanding a clear succession plan in place for Iger, who has said he plans to retire in 2026. He also says he is looking to cut costs, adjust executive compensation levels, and bring back the stock dividend.
Disney says its previously announced cuts are sufficient and Peltz’s “assessment of Disney seemed oblivious to the ongoing secular change in the media industry.”