Shakeup at Disney

[Chris D]

Interesting things happening at Disney, lately. Now yesterday they announced that the embattled chief Michael Eisner will be stepping down as chairman of the Disney board, replaced by former senator George Mitchell, after 43% of voters withheld support. Eisner will remain as CEO, however.

Interestingly enough, I also read today that Disney will be releasing C.S. Lewis' Chronicles of Narnia on film. Here's the story:

http://edition.cnn.com/2004/SHOWBIZ/Movies/03/02/film.narnia.reut/index.html

Brandon, as always, I'm interested to hear your inside perspective!




CHRIS
Luke: "Hey, I'm not such a bad pilot myself, you know"

[George Bellefontaine]

If I was a Disney shareholder, I would feel a little more comfortable that good decisions are being made after the involvement of both a CEO and Chairman of the board. I feel this is a good move.




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[David Meek]

Yes, and I'll bet George's retirement fund that the stepping down was more of the "Eisner, you are stepping down. Now." as opposed to "Hmm, I think I'll step down now."
:tomato: :grab:




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[Chris D]

David, I think that's very true. I saw him on CNN a couple days ago, saying "well, the board and I decided to follow the movement in America of splitting top posts..."

Yeah, right.




CHRIS
Luke: "Hey, I'm not such a bad pilot myself, you know"

[George Bellefontaine]

Yeah, his pride was really showing there, wasn't it.

Hey, Tex, that was a sure bet for my retirement fund.




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[Brandon B]

Well now that I am back at a computer not going through the company network, I will post my feelings on the matter.

Pretty much every employee I am aware of (hundreds) voted along the Roy D. line. The truth of his comments on what M E has done to the theme parks is painfully evident to employees and guests alike. His comments on the superaturated branding/marketing are also true. The "performance-based"multimillion dollar bonuses in poor performing years (when all company raises and promotions are suspended due to poor performance) are rather indefensible.

If I was a Disney shareholder, I would feel a little more comfortable that good decisions are being made after the involvement of both a CEO and Chairman of the board. I feel this is a good move.

If you read the market analysis of our board, you will find frequent references to the fact that they are pretty well lock step with Eisner. This change in roles is virtually meaningless. Mitchell will vote strictly along the same lines as Eisner, almost invariably. So will several others. Thiss "reorganization" is all PR and will have virtually no effect on decision making (although the negative vote itself likely will).

If the board had any independence whatsoever, M E would be out right now. A 43% negative vote is stunningly bad for a CEO. And Mitchell's negative was well over20%, the same level that led the former AOL CEO to quit since he felt the shareholders had no confidence in him.

Many (and me) feel he will liklely be out before his 2006 contract expiration, as a board that ignores the wishes of its shareholders often can find itself tossed out wholesale. We'll see. But don't look for any better management from the "new" board.

BB

[David Meek]

Jeez Brandon, that sucks - largely! Well, I hope that the stockholders DO come to the same conclusions and quickly for your (the employees' sake).




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