CalPERS Throws Weight Behind Peltz

The clash in the boardroom of Walt Disney (NYSE:DIS) is reaching a boiling point with the entrance of heavyweight California Public Employees Retirement System (CalPERS) into the fray. CalPERS made a bold move by declaring its support for the director nominees of activist investor Nelson Peltz and former Disney CFO Jay Rasulo.

Trian Fund Management Gains Traction

Trian Fund Management’s audacious campaign, initiated in early 2024, is gaining momentum as it reels in crucial endorsements. Notably, influential proxy advisory firm Institutional Shareholder Services has thrown its weight behind Peltz but not Rasulo, adding an intriguing twist to the unfolding saga.

CalPERS’ Strategic Move

CalPERS, as the largest public pension fund in the United States, holds significant sway in Disney’s governance landscape. With a substantial stake of 6.65 million Disney (DIS) shares as of the close of 2023, its endorsement of Peltz and Rasulo adds a formidable level of support to the activist cause.

Implications for Disney’s Future

The imminent annual shareholders meeting, scheduled for next week, is poised to be a pivotal moment in the ongoing power struggle within Disney’s boardroom. Investor votes will determine the constitution of the 12-member board, marking the climax of a protracted battle between Trian and Disney CEO Bob Iger.