Walt Disney Co DIS chairman Robert Iger faces a new challenge as an activist investor Nelson fur plans to compete for a seat on the company’s board of directors.

What happened: Peltz Trian fund management Executives met with top Disney executives like Iger and CFO Christine McCarthy on Tuesday attempted to forge a deal and avoid a proxy fight, but talks yielded no results, the Wall Street Journal reported, citing people familiar with the matter.

Disney’s outgoing chairman Susan Arnold Peltz reportedly called Wednesday morning to offer him a role as board observer and ask him to sign a standstill agreement, but he declined.

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The Burbank, California-based entertainment giant announced Wednesday that its board has elected an independent director Markus Parker as chairman.

It added that Parker would chair newly created succession planning committee. Disney said Trian nominated Peltz for director election, as opposed to the nominees proposed by the board.

Why it matters: Trian wants Disney to plan a successor for Iger, who was then brought back as CEO Bob Chapek was released Nov.

Trian took a stake in Disney for more than $800 million prior to Iger’s return as CEO. It’s now grown by $100 million and is likely to grow even larger, the Journal reported.

Peltz’s firm believes Disney has excessive compensation practices and is not adhering to cost discipline, the Journal said, citing people familiar with the matter.

It was also reportedly criticized Disney’s offers and considers it an overpaid fortune of 21st Century Fox Inc and bid aggressively Sky PLC.

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