Disney names Morgan Stanley's Gorman to board ahead of expected fight

By Thomas Buckley

Walt Disney Co. appointed Morgan Stanley Chief James Gorman and veteran media executive Jeremy Darroch to its board of directors ahead of a expected proxy fight.
 

Darroch’s appointment will be effective Jan. 9, while Gorman’s will take effect on Feb. 5, Disney said Wednesday in a statement.

Billionaire Nelson Peltz and his Trian Fund Management are planning their own nominees to the board next year. Trian has amassed a $2.66 billion stake in Disney. It also has the backing of Ike Perlmutter, former chairman of Marvel Entertainment, who was fired by Disney after lobbying for Peltz to join the board. 

 

Earlier this month, ValueAct Capital Management became the second activist investor to amass a stake in Disney. While its intentions aren’t known, the company isn’t working with Peltz, people with knowledge of the matter have said. 

Also in November, after Peltz’s renewed interest in board seats was reported, Disney Chief Executive Officer Bob Iger increased the company’s annual cost-cutting target to $7.5 billion from $5.5 billion.

At the New York Times DealBook Summit in New York on Wednesday, Iger said the Disney’s board will consider potential nominations from Peltz in line with its regular process.

The company has yet to schedule its 2024 annual meeting.

Disney shares closed unchanged at $92.50 in New York.