The Battle for Disney (CONSOLIDATED THREAD) (1 Viewer)

[Ernest Rister]

Eisner Gets Rebuke From Disney Board
Mar 3, 3:48 PM (ET)
By GARY GENTILE

PHILADELPHIA (AP) - Michael Eisner faced a rebuke of his leadership of The Walt Disney Co. Wednesday as 43 percent of shareholders withheld their support for him in a vote at the company's annual shareholder meeting.

The number of shares withheld was higher than many had been expecting, and represented a victory for shareholder activists Stanley Gold and Roy E. Disney, former board members who have been leading a shareholder revolt against him.

Eisner is running for re-election unopposed, so his job is not in immediate danger. But the depth of shareholder dissatisfaction with him could lead to other steps, such as a separation of the chairman and CEO roles, both of which he currently holds.

--------

Addendum:

24% Withheld Support for Board Member George Mitchell...

 

[Bill Williams]

...and so do 100 percent of Disney fans for his corrupting of classic films for "special edition" DVD releases.

Eisner out, Roy Disney back in - that's my vote!

 

[Edwin Pereyra]

Eisner won't be resigning. He's got a $110M+ golden parachute waiting even if he is ousted. He's counting his millions right now. The price that stockholders pay.

~Edwin

 

[Ernest Rister]

$110 million? Small price to pay to get rid of the man who approved California Adventure, mandated talking animals in Dinosaur, flushed millions down the toilet on Go.Com, refused to honor Katzenberg's contract, alienated Pixar, killed hand-drawn animation at Disney and planned on re-rendering Walt Disney's classic animated features in CGI.

God bless you, Roy Disney, for standing up and fighting for what you believed in, for putting your money where your mouth and heart were. Your father and your uncle are proud of you today.

 

[Casey Trowbridg]

I was looking for something like this, and somehow I knew Ernest would have posted the scoop.

43 percent, that's even higher than I was expecting/hoping for, and I agree 110 million small price to pay, compared to the amount of damage he's done.

 

[Tony Whalen]

Waiting with bated breath...

 

[Tony Whalen]

43 percent. Wow.

 

[Edwin Pereyra]

I will be looking forward to a new and revived Disney Co.

~Edwin

 

[Chris]

Man, with so many Disney business threads, why can't these be merged?

 

[ThomasC]

Good riddance. As far as I know, he's the one that demanded that Pearl Harbor have a love story. That worked out well.

 

[Ernest Rister]

I remember Roy low-balling his hopes to 20% just a few short weeks ago, when CNN, FOX, and MSNBC business analysts all said he had no chance at affecting change. 20% was enough to send a strong message, Roy claimed.

 

[Allen Hirsch]

Did anyone see George Mitchell's column in the Wall Street Journal the other day?

Basically he tried to claim the Disney board had already cleaned up its act, and that Eisner either initiated or agreed with all the moves regarding corporate governance. It closed saying perception hadn't yet caught up with reality - kind of a whitewash of Eisner's problems.

I'd say the Disney board got a dose of reality today if over 40 (FORTY) percent withheld support for their CEO/Chmn to be re-elected. I can't imagine there won't be a change, though it's very dicey for them to do it immediately - makes 'em look like they caved in based on the vote, and makes them more vulnerable to the Comcast bearhug offer, unless they have a new top dog waiting in the wings (ironically, the absence of succession planning - something one can put squarely at Eisner's doorstep - was one of the big gripes from institutional shareholders who withheld votes).

 

[Ernest Rister]

Disney Shareholders Give Resounding No Confidence Vote On Eisner
Roy Disney and Stanley Gold Say Vote Is Clear Message That Eisner Must Go

Philadelphia, PA - March 3, 2004 -- "The resounding 'No Confidence' vote cast by shareholders/owners of The Walt Disney Company (NYSE: DIS) has sent a clear and undeniable message that dramatic change is needed now and that Michael Eisner must go," Roy E. Disney and Stanley P. Gold said today.

Messrs. Disney and Gold said that their estimated tally of votes indicates that Walt Disney Company shareholders withheld more than 40% of votes from Michael Eisner for re-election as a Director of the Company, and 20% from George Mitchell, John Bryson and Judith Estrin as Directors.

"It has been suggested that Mr. Eisner's withhold vote is really a referendum on the separation of the jobs of chairman and CEO," they stated. "While we agree that this is a necessary action, and the job should be split, we don't believe Mr. Eisner should have either job." As Patrick McGurn of Institutional Shareholder Services said, "This is unprecedented. This is beyond a referendum on corporate governance. This is a referendum on Eisner's continued presence at the company." ISS earlier recommended a "no" vote on Mr. Eisner.

Other shareholders and advisory services have sent similar messages.

Glass Lewis, another leading independent proxy advisor, stated, "The Disney board has been notoriously insular, famously gullible and blindly loyal to Mr. Eisner." Glass Lewis also noted that "while the corporate world is watching carefully the fate of the Disney directors, investors should be heard to say in unison: we will hold directors' feet to the fire for present and past transgressions."
Sean Harrigan, President of the CalPERS Board of Administration stated, "We have lost complete confidence in Mr. Eisner's strategic vision and leadership in creating shareholder value in the company."
Orin Kramer, chairman of the New Jersey State Investment Council has been quoted as saying, "Eisner has created no value for shareholders for the past seven years."
Calstrs was quoted as saying, "Eisner's strategic vision as illustrated by his past actions doesn't encourage us that he's taking The Walt Disney Company in the right direction.
T. Rowe Price said its decision was a "message that if companies don't perform, we do have a vote."
The Connecticut Pension Fund noted that "management should report to the board, not the other way around."
New York State Comptroller Alan Hevesi, speaking for the New York State Retirement Fund, said, what Disney must do is "separate the positions of chairman and chief executive and ... replace Mr. Eisner as soon as possible."
"Spin and window dressing will no longer be tolerated," Messrs Disney and Gold said. "Eight years of patience has worn thin. We have had years of substandard performance and years of talk. It is now time for the Disney Board to take action. It is now time for the Disney Board to hold management accountable.

"We have said from the start that we believed anything north of a 20% withhold vote would send a strong message to the Board that shareholders were demanding a change at the company, that Michael Eisner must go. After today's mandate, the Board can no longer ignore the will of its shareholders. The 'No Confidence' vote received by Mr. Eisner is unprecedented in American corporate history," they stated.

"Contrary to what Mr. Eisner told Larry King, this will not just 'go away.' Disney's shareholders have spoken. They want real and meaningful change and they want it now. As for the two of us, it is our intention to be here next week, next month and next year. We will be here for as long as it takes," Messrs. Disney and Gold said.

"We intend to press forward and ensure that the Disney Board is held accountable," they continued. "We trust that this Board has heard the message of its shareholders today and that in a very short period of time will do what needs to be done: find a new CEO and a new senior management team with creativity and strategic vision and an ability to create superior financial performance. If this board fails to seize this opportunity, we promise we will be back. We hope that won't be necessary. This Board must accept responsibility and put the interests of its shareholders ahead of those of Mr. Eisner and his management team."

 

[Chris_Morris]

CNN Money has a poll going. Currently with 25179 votes:
For - 15%
Against - 78%
Withhold - 7%



Chris

 

[Glenn Overholt]

Nice one, Chris. I'd like to see another vote tomorrow. How high do you think it would go? How many just went 'for' it today thinking that the 20% might have actually ended up at just 10%.

And I wonder how long it will take for prospective chairmen and CEO's to get put on a ballot.


I wish he would just up and quit. If he stays on, his reputation is just going to go lower and lower.

Glenn

 

[Mark-W]

I haven't been this happy since LOTR:RoTK swept the Oscars.



Mark

 

[Ernest Rister]

Guess you're having a happy week.

 

[Chris]

http://apnews.myway.com/article/20040304/D8138T900.html

Disney splits position, names George Mitchell (frmr senator) CEO.

Great, get someone who knows even less about creativity who has been a toady for the company.

 

[Edwin Pereyra]

I said earlier: I will be looking forward to a new and revived Disney Co.

In light of what just transpired, I'll have to withdraw my earlier comments for now. :frowning:

~Edwin

 

[Ernest Rister]

THE BATTLE CONTINUES

Disney Co. Splits CEO, Chairman Positions
Mar 3, 9:11 PM (ET)

By GARY GENTILE

PHILADELPHIA (AP) - The Walt Disney Co.'s board voted late Wednesday to split the roles of chairman and chief executive, hours after shareholders delivered a stinging rebuke by withholding 43 percent of their votes for CEO Michael Eisner's re-election to the board.

Disney directors voted unanimously to make board member George Mitchell the company's new chairman and voiced their continuing approval of Eisner's management and the company's strategy.

The change is effective immediately.

The board also rejected a renewed overture from cable television giant Comcast Corp. (CMCSA), saying it would serve no purpose to reconsider an offer already dismissed as too low.

The move is unlikely to satisfy the company's most vocal critics, ex-board members Stanley Gold and Roy E. Disney, who have vowed to continue their fight to oust Eisner.

---------------


Eisner is going to bail. This is too sharp a blow to his ego. It is only a matter of time. Once Eisner leaves, the dominoes will fall.

tick tock

tick tock

tick tock