Disney should consider adding Nelson Peltz to its board, suggests activist investor.

• Disney shareholders were urged by activist investor Ancora to include Nelson Peltz on the company's board.
• After launching a proxy fight last week, Peltz and his firm Trian Fund Management received an endorsement.
• The investor believes that a change in Disney's boardroom is necessary.

On Tuesday, Ancora, an activist investor, urged Disney to appoint Nelson Peltz to its board, following Trian's proxy fight with the entertainment giant.

To avoid an election contest after a year of distractions and poor performance, we urge you to support the Board in reaching a viable compromise with Trian Fund Management, L.P. and Nelson Peltz. Mr. Peltz (or a qualified designee) would be an excellent addition to Disney's Board.

Disney's recent struggles, such as streaming losses and box office failures, could be attributed to the company's board, as suggested by Ancora.

Disney's boardroom requires a degree of shareholder-driven change after a prolonged period of poor governance, ineffective succession planning, divisive actions, and sustained value destruction, according to Ancora. While it has been argued that the challenges are primarily due to Bob Chapek's tenure, the Board was responsible for the situation before, during, and after that time.

Disney accused Trian of having a personal grudge against Iger, which led to the move to oust him from the board. Trian owns about $3 billion in Disney stock, but the majority of the shares are owned by Perlmutter, who was laid off by Disney earlier this year. Trian wants more than two seats on Disney's board, which is dominated by directors loyal to Iger.

As of September, Ancora owned more than 60,000 shares of Disney, equivalent to an approximately $6 million stake. However, the company's announcement on Tuesday did not disclose the size of its stake in Disney.

As of Tuesday, Disney's market cap was approximately $160 billion, with its shares declining by over 1%. Despite this, the stock has risen more than 4% year-to-date, lagging behind the broader S&P 500.

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