TBEN’s Jim Cramer called on Thursday disney to give activist investor Nelson Peltz a seat on the board.
“It’s the board, the stewards, that haven’t got it right. Not the shareholders, and not Peltz. Now someone like Peltz, who’s been hugely successful, wants to join them and they act like that’s a problem.” he said. .
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Trian Fund Management, Peltz’s activist firm, filed a preliminary proxy statement on Thursday to name the investor to Disney’s board.
Peltz presented his plan for a proxy fight against the entertainment giant Thursday on TBEN’s “Squawk on the Street.”
He highlighted his issues with Disney, including the $71 billion acquisition of TBEN in 2019 that he says ruined the company’s balance sheet, the deterioration of the company’s shareholder value in recent years, and what he considers poor corporate governance.
Cramer agreed with Peltz’s assessment of Disney’s precious TBEN acquisition and balance sheet, criticizing the company for resisting the activist investor’s bid for a board seat.
He also reminded investors who own shares of the company that a proxy fight could put a dent in shareholder returns.
“A lot of money, your money if you’re a shareholder like my charity fund, will be spent to prevent Nelson Peltz from joining the board… Bob Chapek the CEO,” said Cramer.
indemnification; Cramer’s Charitable Trust owns stock in Disney.
