Disney Boardroom Battle - Is Having Retail Investors Important?

Customers often ask us, “Is having retail investors important?” The answer has always been yes, whether because of their investments across multiple funding rounds or the many benefits created by a groundswell of customers and brand evangelists who are also shareholders.

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Last week, we saw this effect on the public stage for Disney, where retail investors, not institutional giants, ran the show.

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At its last shareholder meeting,  Disney won a landslide victory against activist investor Nelson Peltz, a billionaire who campaigned to install his own board members and oust current CEO Bob Iger. Peltz, who owns roughly $3.5B of Disney stock, called for a radical change in direction, publicly deriding current leadership and slamming the company’s recent focus on gender and racial diversity.

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Losing this fight would have been a huge embarrassment for both Iger and Disney—but it also would have had worrying implications for the company’s future. According to Disney’s current directors, Peltz “had not actually presented a single strategic idea for Disney” in his proposals—suggesting a concerning lack of direction that could plunge the company into chaos.

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The stakes were astronomical, to say the least. Disney responded with force, spending almost $40 million campaigning to its shareholder base. In the end, almost 75% of Disney’s retail investors voted against Peltz, who received just 31% of the total vote.

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This boardroom battle, one of the most expensive in history, was a vivid demonstration of the sheer power of a broad and engaged shareholder base, particularly retail investors. In an era where information and participation are democratized, retail investors are increasingly informed, passionate, and influential. These retail investors, often undervalued in discussions about corporate influence, have emerged as decisive forces, challenging the traditional dynamics of power in corporate America.

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As leaders and strategists, nurturing a large shareholder community is more than just a brand-building power play; it also creates a diverse and resilient support system that can help steer companies through turbulence. In Disney's case, their faith and foresight have not only averted a potential leadership upheaval but also reinstated confidence in the company itself.

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Companies of any size can benefit from turning customers, followers, and fans into shareholders; they truly are the best brand ambassadors, providing stability, support, and capital in exchange for a seat at the table. Their collective voice is not just significant—it’s transformative.

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