In a heated battle for board seats at Disney, the California Public Employees Retirement System (CalPERS), a top pension fund, has announced its support for activist investor Nelson Peltz and former CFO Jay Rasulo. CalPERS, with 6.7 million shares in Disney, believes that fresh perspectives on the board of directors would benefit the company.

John Myers, chief of the CalPERS Office of Public Affairs, stated that the pension fund's voting guidelines prioritize independent corporate boards, a say in setting executive pay, and increased transparency. CalPERS will also vote for incumbent CEO Bob Iger and other board members, but their main focus is to bring about meaningful change in corporate governance.

This announcement by CalPERS adds more weight to the ongoing board clash, which has already seen influential voices supporting Iger and the incumbent board. However, CalPERS' backing may have an impact, as they are one of the top 40 shareholders in Disney.

With 1.8 billion shares outstanding, Disney may not be too concerned about CalPERS alone. Nevertheless, the current vote has become uncomfortably close for Disney, given that individual and small shareholders make up 40% of the company's owners. Perception is crucial, and many small shareholders have reported receiving calls, campaign materials, and outreach from both Disney and Peltz's Trian Partners.

Previously, Peltz faced challenges in his bid for board seats, as Iger and the incumbent board garnered support from big names such as George Lucas, Laurene Powell Jobs, and ex-CEO Michael Eisner. Additionally, influential parties like JPMorgan Chase CEO Jamie Dimon, advisory firm Glass Lewis, and ValueAct Capital rallied behind Iger. However, on March 21, influential proxy advisory board Institutional Shareholder Services recommended adding Peltz to the Disney board, citing concerns about succession planning and the role of current board member Maria Elena Lagomasino.

Furthermore, another player in the board clash, Blackwells Capital, has put forward its own nominees. They have also instigated a lawsuit against Disney regarding an alleged inappropriate corporate relationship with ValueAct. Disney dismissed the lawsuit as baseless.

Shareholders have until 11:59 p.m. ET on April 2 to cast their votes, with the results to be revealed at the virtual shareholder meeting on April 3. The meeting will be livestreamed on Disney's investor relations website.

As the Disney board clash nears its conclusion, the support of CalPERS adds a significant twist to the proceedings. The outcome of the vote will determine the composition of the board and potentially impact the future direction of the entertainment giant.