Bob Iger took a victory lap this morning, a day after the company fended off activist investor Nelson Peltz in a fierce proxy battle. In an interview on CNBC, he said the fight had one positive, getting the company in closer tough with investors as it lobbied for its board slate.
Peltz didn’t have much strategically to offer but he dug in on succession, as the cable net’s David Faber did today. “Clearly shareholders care about it, given what the company has been through,” Iger acknowledged, noting that a board succession committee led by chair Mark Parker met seven times last year and will meet more this year to identify the next CEO before his contract ends in 2026. “I think it’s really important to name the right person at the right time. I’m going to create a transition process that is healthy.”
He didn’t say how long of a transition was being considered. “But I think it’s really important to have a good transition process. This is a big, complicated company. And not only is important to choose the right person, but it’s really important to give that person all the opportunity in the world to be successful in the job. And the board is very focused on who the person is when the decision should be made. And essentially, how the handover of service will take place … They are treating it with a sense of urgency.”
Asked about the last handoff of CEO baton, he said “it could not have happened at a worst moment for the company and in the world. COVID hit soon after Bob Chapek was named CEO,” shutting down moviegoing, production, theme parks and live sports were not occurring. “This company was hit very, very hard. And it handed my successor a set of challenges that were enormous in nature. And hopefully that will not be the case the next time around. I don’t think that the there’s much more I can add in terms of the process itself or the transition. Obviously, you we all learn from the past.”
Overall, he said, “This whole process [fighting off Peltz] gave the board and some members of management an opportunity to engage with many shareholders, perhaps in the on an even deeper level, and have a good, honest, candid dialogue, where we had an opportunity to describe the shareholders, what our priorities are, and what our various processes are, including succession. And we had an opportunity to listen to them and hear what was on their minds as well. So I think, if anything came of this, from that it’s positive is that it did in fact, increase the engagement that we’ve had with shareholders in this. And that’s a very good thing.“did increase the engagement that we had with shareholders, and that’s a good thing.”
Clearly, shareholders are interested in care very much about succession,” he said, “given what the company has been through over the past few years.”
Iger denied that pressure from the activist investor had anything to do with a bump in Disney‘s share price or flood of strategic initiatives (manyt Wall Streeters believe it did have some impact).
MORE
