As the proxy fight escalates, activist investment firm Trian Fund Management has formally nominated its co-founder and CEO Nelson Peltz, alongside former Disney CFO Jay Rasulo, to Disney's (DIS) board. Peltz says it is time to “restore the magic” at Disney in his proxy filing.

However, Disney previously contested that Peltz lacks sufficient experience with the board rejecting both nominations.

Yahoo Finance's Bradley Smith and Seana Smith break down the details.

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Editor's note: This article was written by Angel Smith

Video Transcript

BRAD SMITH: The proxy fight is on at Disney. Trian partners is formally nominating Nelson Peltz and Jay Rasulo, the former chief financial officer for Disney, to the entertainment giant's board of directors. The filing does not disclose which directors they would replace.

Here's the news of the day, as well, though and their nomination, is that they are entirely starting this campaign as one to bring the magic back to Disney here, as they say.

SEANA SMITH: Yeah. That line that stuck out to me there, Brad. And Nelson Peltz are really drilling down in the fact that quote, "it is unfortunate that a company as iconic as Disney with so many challenges and opportunities has refused to seriously engage with us."

And we heard from Disney just a few days ago saying that they have engaged with Trian more than a number of times. They do not think Peltz is the right person for a board member spot because of his lack, among other things. It was a long list of things that Disney pointed out, in terms of why they are not supporting this push here from Peltz.

But among them, the lack of his experience within the media and technology sectors. But Peltz pushing back on that saying that Disney is resisting change. And he is asking shareholders to endorse a board comprised here mainly of legacy directors, who have repeatedly failed to properly plan for CEO succession.

He also went on to say that they have misaligned the incentives of management and failed to oversee or drive a strategy to get the streaming business to profitability. We know that he has laid out a number of assets and a number of wants here in terms of where he sees the direction, or where he would like to see the direction of Disney going. He has said, he wants to work with Bob Iger, as well. But Disney, obviously, pushing back on that. And this is a long battle between the activist investor Nelson Peltz and Disney. He's been pushing for changes now for quite some time.

BRAD SMITH: Yeah. Some of those goals and initiatives and initial perspectives that they lay out as part of this as well. They're trying to push for a complete successful CEO succession, which has been up in the air ever since Bob Iger came back ultimately. A clear successor for Bob Iger, who has essentially been a boomerang CEO multiple times over at this point at Disney.

They also are looking for the achievement of Netflix like margins, they say, 15% to 20% by fiscal year 2027 for their streaming profitability. And then I'll just end with this one. Even though they have three others, but I'll end on the future of ESPN because this one has continued to come in focus. They want to commit to a reasonable defined payback period and return profile on ESPN flagship direct-to-consumer and communicated in detail prior to the launch as well.

So those are just three of the five major call outs. They also talk about studio creativity and parks and experiences growth as well.