99% of Disney Shareholders Reject Anti-DEI Proposal
At The Walt Disney Company's annual shareholder meeting on 20 February, a proposal challenging the company's participation in the Human Rights Campaign's (HRC) Corporate Equality Index was overwhelmingly defeated.
The proposal, which sought to push Disney to reconsider its commitment to the index, received support from only 1% of shareholders, signalling strong investor backing for the company's diversity, equity and inclusion (DEI) initiatives.
Disney has long been recognised as a leader in LGBTQ+ workplace inclusion, consistently earning a top score of 100 on the HRC's Corporate Equality Index. This index is a comprehensive benchmarking tool that evaluates companies based on their policies, practices and benefits pertinent to lesbian, gay, bisexual, transgender and queer employees.
The rejection comes soon after Disney removed mentions of two key DEI programmes – "Reimagine Tomorrow" and the "Disney Look" appearance guidelines – in 10-K filing for the fiscal year ending 30 September 2024.
Disney’s CEO, Bob Iger, believes that Disney should not be “agenda-driven” – the company’s priority is to entertain.
Why did the proposal fail?
The proposal, put forward by the National Centre for Public Policy Research, argued that Disney's involvement in "divisive political issues" alienated audiences and negatively impacted the company's stock price. It suggested that withdrawing from the HRC index would allow Disney to "move back to neutral."
However, Disney's board of directors strongly advised shareholders to reject the proposal. In SEC filings, the board stated that doing so would not "provide additional value to shareholders."
They emphasised Disney's commitment to transparency on issues important to stakeholders through participation in external surveys like the HRC index, a stance that clearly resonated with the vast majority of investors.
The broader implications for ESG
The rejection of this anti-DEI proposal comes at a time when some companies, including Ford, Harley-Davidson and Lowe's, have stepped back from the HRC's Corporate Equality Index.
Disney's firm stance sends a strong message that commitment to DEI is a business imperative and a key component of ESG strategies.
Shareholders also rejected other proposals, including one requiring Disney to publish a report disclosing how its retirement plan investments protect beneficiaries from investments in high-carbon companies.
Investors also voted against proposals related to politically neutral ad policies, and evaluating risks related to discriminating against ad buyers based on their political or religious views.
Disney's finances and future
The annual meeting followed the release of Disney's Q1 fiscal 2025 results, which showed revenues of US$24.96bn and a net income of US$2.55bn.
Today, we have the ability to greatly enhance the quality of our storytelling and to reach more people, in more places, in more ways than ever before
With all directors re-elected to the board, including James Gorman, Chairman Emeritus of Morgan Stanley, Mary Barra, CEO of General Motors and Bob Iger, CEO of Disney, the company appears poised to continue its focus on both financial performance and corporate social responsibility.
As part of a comprehensive strategy to enhance guest experiences and drive growth, Disney is allocating US$30bn over the next decade to transform its theme parks, which is a significant component of a broader US$60bn investment in its parks, experiences and products division.
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