by Ray Keating
News
DisneyBizJournal.com
December 14, 2023
Today, Trian Fund Management nominated two candidates for Disney’s board of directors at the company’s 2024 annual shareholder meeting – one expected and another a surprise.
One candidate, of course, was Trian founder, Nelson Peltz. But the second was the surprise - James “Jay” Rasulo, who served as Disney chief financial officer from 2010 to 2015. Rasulo had spent three decades at Disney, and was once in the fight to succeed Iger as CEO. The Rasulo selection makes for an unexpected and interesting twist in this proxy fight.
As noted in the Trian release, “Before being appointed CFO, Jay was Chairman of Walt Disney Parks and Resorts Worldwide from 2005 to 2009 and was President of Walt Disney Parks and Resorts from 2002 to 2005.” It also was noted in the release what Disney CEO Bob Iger had said about Rasulo, i.e., saying Jay was “a vital contributor to Disney’s success” with “strategic acumen and savvy insight.”
Rasulo said, “The Disney I know and love has lost its way. As independent voices in the boardroom, Nelson [Peltz] and I are confident that the combination of my decades of experience at Disney, Nelson’s significant boardroom skills and history of driving positive strategic change, and our combined consumer brands expertise and financial acumen, will be additive to the Disney Board. With a shareholder mandate, Nelson and I look forward to helping the Board and management reorient the Company towards delighting its consumers again and driving significant value for its owners.”
According to The Wall Street Journal:
Rasulo joined Disney in 1986 and held a variety of executive positions over the next 29 years. In 2002, he was named president of the theme-parks division. Eight years later, he switched jobs with Tom Staggs, another Disney veteran, and became CFO, a move that put the two men in a horse race to prove their mettle as potential successors to Iger.
In 2015, Staggs was elevated to the position of chief operating officer, officially making him the heir apparent, and Rasulo’s contract wasn’t renewed by the board. He stepped down as CFO in June of that year, saying it was a “true honor to work at Disney for these many years, and for a great leader in Bob Iger.”
Trian complained in the release: “Disney stock has underperformed the stocks of Disney’s self-selected proxy peers and the broader market over every relevant period during the last decade and during the tenure of each non-management director. Furthermore, it has underperformed since Bob Iger was first appointed CEO in 2005 – a period during which he has served as CEO or Executive Chairman (directing the Company’s creative endeavors in this role) for all but 11 months. Disney shareholders were once over $200 billion wealthier than they are now.”
In a statement, Disney responded: “Disney has an experienced, diverse, and highly qualified Board that is focused on the long-term performance of the Company, strategic growth initiatives including the ongoing transformation of its businesses, the succession planning process, and increasing shareholder value. The Governance and Nominating Committee, which evaluates director nominations, will review the proposed Trian nominees and provide a recommendation to the Board as part of its governance process.”
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
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