Disney Shareholders Overwhelmingly Back Board at Annual Meeting
Walt Disney Co. shareholders voted overwhelmingly in favor of the media giant’s board of directors and its recommendations at its annual meeting Thursday, showing support despite a recent downturn in its stock price.
Nine members of the board of directors were re-elected and two, wealth-management executive Maria Elena Lagomasino and Nike Inc. Chief Executive Mark Parker, were elected for the first time. All 11 received at least 94% support among votes cast before the meeting.
Shareholders supported a nonbinding resolution supporting Disney’s executive compensation with 84.6% support.
Shareholder-introduced resolutions to change the board’s voting rules and require more transparency on corporate lobbying were voted down, with 34.8% and 27.1% support, respectively. Disney’s board had opposed both resolutions.
Also at the meeting, held in Chicago, Chairman and Chief Executive Robert Iger said that Disney is starting work on two new cruise ships that are scheduled to debut in 2021 and 2023, adding to its current fleet of four. The company’s last two cruise ships cost nearly $1 billion each to build. That business has been performing well, reaching its best-ever performance for the media giant’s first quarter, which ended Jan. 2, because of higher ticket prices and onboard spending.
Mr. Iger also said December’s hit movie “Star Wars: The Force Awakens” will be available for digital purchase on April 1, followed by a release on DVD and Blu-ray disc April 5. The home entertainment launch of the movie, which grossed more than $2 billion world-wide and a record-setting $927 million in the U.S. and Canada, should be a major revenue driver for Disney’s film division.
Answering shareholder questions, Mr. Iger continued his continuing defense of the strength and future potential for Disney’s ESPN, despite investor concerns about subscriber losses and the deteriorating cable bundle.
“Will it grow how it did the last 15 to 20 years into the future? Probably not,” he said. “But it should still deliver growth into the future.”
ESPN-related concerns have been the main driver of a 19% drop in Disney’s stock price since August. Disney shares were up 1% at $98.39 in midafternoon trading on Thursday.