Proxy advisor Egan-Jones has joined ISS in endorsing activist investor Nelson Peltz's push for seats on the Disney board. This development marks a significant boost for Peltz's Trian Fund Management, as ISS is a highly influential advisory firm.

Unlike ISS, Egan-Jones not only supports Peltz but also backs former Disney executive Jay Rasulo, Trian's other nominee to the board. The advisory firm recommends shareholders withhold support for Maria Elena Lagomasino and Michael B.G. Froman, who are part of Disney's slate of nominees.

The votes of Disney shareholders will be tallied at the company's upcoming annual meeting, scheduled for next Wednesday. In a statement, Egan-Jones expressed confidence in the potential benefits of having Peltz and Rasulo on the board, stating, "We see very little downside and a lot of upsides in putting the Trian nominees on the board."

Egan-Jones cited concerns over Disney's apparent lack of a long-term succession plan and a board that seems unwilling to engage with investors and the broader market. The firm also criticized Disney's business model, noting that it may not be forward-looking or flexible enough to ensure future success.

Peltz's campaign against Disney began last year when the company's shares hit a multi-year low. Trian has also raised concerns about Disney's film strategy, contributing to the opposition movement, which is the most significant challenge the company has faced since 2004 when Michael Eisner lost his chairman title.

Disney has responded to Peltz's criticisms, highlighting his lack of media business experience. The 81-year-old investor, however, has a track record of leading successful proxy battles, including a recent one at Procter & Gamble.

While Egan-Jones and ISS have supported Peltz, proxy advisory firm Glass Lewis has backed Disney's nominees. Disney's CEO, Bob Chapek, and Chairman Bob Iger have received public support from figures such as George Lucas, Laurene Powell Jobs, and members of the Disney family.

As the annual meeting approaches, all eyes will be on the outcome of the shareholder vote, which will determine the future composition of the Disney board and potentially shape the company's strategic direction in the coming years.