Disney CEO Robert Iger faces new challenge as activist investor Nelson Peltz seeks board election

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Disney CEO Robert Iger faces new challenge as activist investor Nelson Peltz seeks board election

Robert Iger, the CEO of Walt Disney Co DIS, faces a new challenge as activist investor Nelson Peltz plans to fight for a seat on the company's board.

What Happened: Peltz's Trian Fund Management executives met with Disney's top leaders such as Iger and CFO Christine McCarthy on Tuesday in an attempt to forge a deal and avoid a proxy battle, but the talks did not yield results, according to people familiar with the matter, according to the Wall Street Journal.

On Wednesday morning, Disney s outgoing Chair Susan Arnold called Peltz to offer him a role as board observer and ask him to sign a standstill agreement, but he declined.

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The Burbank, California-based entertainment giant said on Wednesday that it had elected independent director Mark Parker as chairman.

Parker would chair a newly created Succession Planning Committee. Disney said Peltz was nominated for the board's election as a director in opposition to nominees recommended by the board.

Why It Matters: Trian wants Disney to plan for a successor to Iger, who was brought back as CEO after Bob Chapek was fired in November.

Trian took a stake of more than 800 million in Disney ahead of Iger's return as CEO. The Journal reported that it has grown by $100 million and is likely to get bigger.

The Journal cited people familiar with the matter, who said Peltz's firm thinks Disney has excessive compensation practices and does not follow cost discipline.

It has also been critical of Disney's deals and thinks it overpaid for the assets of 21st Century Fox Inc and bid aggressively for Sky PLC.

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