It is one of the most high-profile governance battles of recent years. But reports this week suggest the board of Disney, the world’s most famous entertainment company, may be edging ahead of activist investors who seek seats on the board.

Trian Partners, a hedge fund owning a $3.5bn stake in Disney, called in March for the appointment of its own founder, Nelson Peltz, and Jay Rasulo to the board of the film maker and streaming platform, and the removal of long-standing non-executives Michael Froman and Maria Elena Lagomasino.

Reports after the Easter weekend, however, suggest the Disney leadership may be winning out, having gained the support of the world’s largest fund manager, BlackRock, and the broker-dealer T Rowe.

News filtering out of the shareholder vote ahead of the AGM on Wednesday underscores just how heated the issue has become for Disney, though there remain many more votes to be counted.

Bob Iger, Disney’s chief executive, who returned to helm the company in November 2022 following the departure of Bob Chapek, called the proxy battle a “distraction” at a conference at the beginning of March.

Iger was brought back to Disney after the company became embroiled in political battles with Florida governor Ron DeSantis over LGBTQ rights. Chapek had publicly opposed “Don’t Say Gay” policies introduced in Florida in 2022 and the governor had responded by passing laws removing the entertainment company’s special administrative status.

Political fall-out

Iger has since been battling to negotiate the political fall-out as well as rebuild the company’s creative roster and boost its streaming service, which competes in what has become a crowded marketplace.

Trian’s letter to shareholders last month says Disney’s stock had “underperformed” against peers over the past five years. The company, the letter said, had “lost its way”.

It also accused Disney of using “inflammatory rhetoric”.

“We love Disney,” the letter says. “We are a large investor and we come with the sole purpose of helping the company get back to delighting consumers and delivering strong shareholder returns.”

Social media comments about the Trian intervention have, in many cases, assumed an angry tone, many mentioning Nelson Peltz’s recently declared support for a new Donald Trump presidency and mixing politics with investment concerns.

Others have been more considered, though no less pointed. Nell Minow, vice chair of shareholder advisory firm, ValueEdge, posted on X that she had voted for the “Disney candidates”.

Reuters reports that each side has “hundreds of people” making phone calls to investors—Disney has a high proportion of retail investors—attempting to sway their votes.

Today will be a long one for the Disney board. But the company’s future depends on it.