There was a little more buzz than usual heading into Walt Disney's (NYSE: DIS) annual shareholder meeting on Wednesday. With CEO Bob Chapek in the crosshairs of both theme park enthusiasts and more recently advocates for equality, even a mundane vote to keep its boardroom intact was suddenly a saucy situation.
Disney's presentation was a multimedia trip through all that the media giant has done and the rich pipeline of content on the way. Shareholder Q&A was the typical collection of complaints and suggestions. Let's take a closer look at some of the bigger moments of the 90-minute shareholder meeting.
Image source: Getty Images.
1. Chapek easily survives board vote
All 11 of Disney's board members were up for reelection. Online petitions began making the rounds last year to have Chapek ousted by frustrated Disney World and Disneyland pass holders upset by recent changes in pricing and policy at the gated attractions. Those boo birds were joined in recent weeks by activists upset that Chapek didn't take an official stance against the Florida's Parental Rights in Education bill that bans classroom instruction from discussing sexual orientation and gender identity for children in kindergarten through third grade.
Retail investors from two different camps vowing to vote against keeping Disney's CEO on the board. They were vocal on social media, but it didn't come close to happening. They didn't have the votes. Disney didn't reveal every individual vote tally during the meeting, but it did say that all 11 received at least 94% of the votes to continue serving on the board.
This won't be a repeat of Michael Eisner's proxy vote in 2004. The CEO at the time survived the board vote, but with 43% of the shares withheld he was eventually demoted as chairman. He stepped down as CEO a year later. Chapek still has some dissidents to win back, but he doesn't seem to be leaving anytime soon.
2. Disney finally takes a public stance on the Florida bill
It may be too little too late, but Chapek kicked off the Q&A component of the meeting by announcing that Disney opposes the Sunshine State's Parental Rights in Education bill. Disney tried to work with lawmakers behind the scenes to address the pressure points, but those moves did not bear fruit. Chapek also revealed that he had a conversation with Florida Governor Ron DeSantis, and both parties agreed to meet in person. Chapek will be bringing some of his company's activist leaders opposing the bill to the meeting.
Did Chapek do enough to appease his critics? Many of the shareholder questions centered around Disney's actions in not condemning the controversial bill sooner, but now it's time to process everything that Chapek said before opening up the phone lines.
3. Some things that have gone may come back
Disney had to nix a lot of things from its domestic theme parks in the wake of the pandemic. Some announced rides for both coasts -- including a Mary Poppins attraction at Florida's Epcot and a Black Panther Quinjet ride in California -- have been getting the Encanto Bruno treatment by the House of Mouse. We don't talk about Bruno.
Disney also never resumed selling the one annual premium annual pass that includes admissions to all six of Disney's domestic theme parks. The company was asked about the status of all of those things. It confirmed that the Mary Poppins and Marvel additions are currently on hold, but management did hold out hope that they could return as Disney's financial picture improves. Disney's stateside theme parks posted record financial results in its latest quarter, but it doesn't expect Disney+ to a turn a profit until fiscal 2024. Chapek offered a more optimistic view on the return of the Premier Passport, telling the caller that he would check to see if the leading entertainment stock could bring it back.
Not every question had a perfect answer, but things could've been far worse. Disney shareholders hope that there will be less drama at next year's meeting.
