Nelson Peltz, the activist investor and founder of Trian Partners, has announced a second proxy battle against the Walt Disney Company, escalating the pressure on CEO Bob Iger. Trian Partners, with its $3 billion stake in the entertainment giant, intends to take its case directly to shareholders after Disney rejected Peltz's request for board representation.

According to a statement released by Trian Partners, the decision to launch another proxy challenge comes after a significant loss of shareholder value. "Since we gave Disney the opportunity to prove it could 'right the ship' last February, up to our re-engagement weeks ago, shareholders lost $70 billion of value," the statement noted. Peltz's fund also highlighted Disney's underperformance compared to its peers and the broader market over the last decade.

Disney's stock price has seen a modest increase of approximately 3.5% in 2023, falling behind the benchmark S&P 500 index, which has climbed 19% year-to-date. With a current valuation just under $170 billion, Disney trails behind Netflix by approximately $40 billion.

In response to Peltz's challenge, Disney nominated Morgan Stanley CEO James Gorman and former Sky chief Jeremy Darroch to its board as an improvement from the current situation. However, Trian Partners believes these nominations fail to address the underlying issues that have led to significant value destruction and missteps under the current board's tenure.

Peltz has steadily acquired Disney shares since February, when he initially launched a proxy battle against the company. The battle came to an end when Disney agreed to reduce costs by laying off around 7,000 employees.

Apart from the proxy battle, Disney has also faced questions from shareholders regarding the succession plan for CEO Bob Iger when his contract expires in 2026. Iger returned to the company in a dramatic fashion last year following the dismissal of Bob Chapek.

Blackwells Capital, another shareholder of Disney, expressed support for Iger and praised the nominations of Gorman and Darroch. Blackwells CEO Jason Aintabi criticized Peltz's proxy battle as costly and disruptive, urging Peltz to withdraw the effort and allow Disney's board to focus on driving value.

The battle for board seats at Disney continues to unfold, attracting attention from shareholders and industry observers alike. As both sides stand their ground, the outcome remains uncertain, and it remains to be seen how shareholders will respond to Trian's direct appeal for support.