Disney Splits CEO Roles

[Choco Bear]

From Yahoo News

PHILADELPHIA - 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., 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.


Mitchell, a former U.S. Senator from Maine, may also prove to be a controversial choice. Shareholders withheld 24 percent of their votes from his re-election Wednesday — the second highest total after Eisner.


Mitchell has been criticized by Gold and Roy Disney as being too close to Eisner and not independent enough because his law firm had worked for Disney in the past.


In its statement, the board said it had heard the shareholders' message and that it realized investors were concerned about more than just the issue of separating the chairman and CEO positions.


"We are aware that some voted for an immediate change in management and in the board," the statement said. "However, taking all these factors into account, we believe the action we have taken today is in the best long-term interest of the shareholders of the company."

http://news.yahoo.com/news?tmpl=story2& ... &printer=1


This is somewhat amazing news although the fact that George Mitchell whom of which Roy and Goldman have critisized is now part of the dual role. I guess it is a step in the right direction and hopefully it will only get beter. I guess we will just have to wait and see! Im excited and scared but I guess we can all be a little happy. I am just at a loss for words and dont really know what to think or say, but i think im happy?

[karlsen]

... although I also hope that things will change I do not see that electing a friend of Eisner as the new chairman of the board. Mitchell has sadly been doing just what Eisner asks him to in the past, so why should it be diffrent now?

[Maerj]

Well, its interesting and amazing news. I was surprised to see that the vote was 43% against Einster today and now this. Even if Einster does not step down as CEO any time soon, this may hopefully help steer him into making some better decisions.

[karlsen]

I don't think that Michael will change. He firmly belives in money alone, so what should make him change heart now?

[Jack]

Well, this is at least a step in the right direction. Even if the new choice for Chairman may not be the best, the split of Eisner's previous role in the company is a good return to form.

[karlsen]

yes, it is a step in the right direction. All big changes must start with little steps.

[Rebel]

Without seeing this thread, I just posted about this in the stockholder meeting audio stream thread.

Guess what I said...." a step in the right direction."

[Grunches]

Yes this is a step in the right direction. Hopefully it can only get better! We can only hope

[nordstar]

I saw this tonight on a MSNBC show called "Deborah Norville Tonight" She interviewed three people and one of them was Jim Hill. All three people that where interviewed said that this is a step in the right direction. Jim talked a little bit about when Roy called him up for some advice on what he (jim) things should happen within the compay. Jim said that he told Roy that he should take the Flordia artist and picket like what happened with the disney artist in the 40's. It was good to see Jim being acknowledged on national TV. The thing that pissed me off was the fact that Deborah introduced Roy E. Disney as Walt's son.

[Joshua Clinard]

This may appear to be a step in the right direction, but I'm not so sure. I fear it actually may be a step backward. George, the new "chairman" is one of Eisner's strongest supporters. Now, they can use this new position to confuse gullible shareholders and the news media. Before, the blame lay with Eisner. Now, they will have more people to spread the blame around, and George wil be Michael's tool. I don't know what we can do at this point besides hope that the rest of the board will come to their senses, but it's doubtful that they will, since George is the Chairman.

[PatrickvD]

This is no step in any rigt direction... there is only one right step, and that is an entire new management. What's the difference? Mitchell is his lap dog he will keep ruining the company...

they keep avoiding the real issues, like loss of talent, dirty and lame park attractions and cheap sequels, this isn't about switching and splitting positions. I cant believe people are fooled by this stupid move... It's insulting to the shareholders' intelligence...these suits make me so angry... why cant they just admit and resign... its all so easy. They're rich! what more do they need???

[Joshua Clinard]

Two Reuters articles admits that the CEO/Chairman split would not satisfy dissident shareholders. They also state that George Mitchell is not suited to be Chairman after his 24% no confidence vote.

http://www.reuters.com/newsArticle.jhtm ... ID=4493397

http://www.reuters.com/newsArticle.jhtm ... ID=4498687

[2099net]

As I understand it George Mitchell is only acting chairman until somebody more suitable can be found. That's not mentioned in the Reuters article but I'm sure I read it somewhere.

What did you expect Disney to do? I'm sure the split of CEO and Chairman was anticipated before the conference as a contingency plan, but even then it's sort of short notice. What else could they do? Ring up a name out of the blue and hire with immediate effect?

Big hirings and firings don't take place overnight.

Leave it six months or so and see if Disney are making any effort to recruit a new chairman. Then complain.

[Jack]

This is no step in any rigt direction... there is only one right step, and that is an entire new management. What's the difference? Mitchell is his lap dog he will keep ruining the company...

It's a step in the right direction (man, that phrase is getting old, heh heh) because the job of CEO and Chairman has been split. That's one of the things shareholders wanted, because it returns to the way it was when Walt & Roy, and Wells & Eisner, were running the company.

And as Netty already brought out, they can't give the governing board a make-over overnight. Mitchell may not be the prime choice for a new Chairman, but it was done on such short notice. If you stop to think about it, its great that they split the roles so quickly, and hopefully, they'll continue to make positive progress.

[PatrickvD]

yeah your right, they cant do it overnight.... I give em three days

[2099net]

This is no step in any rigt direction... there is only one right step, and that is an entire new management. What's the difference? Mitchell is his lap dog he will keep ruining the company...

And as Netty already brought out, they can't give the governing board a make-over overnight. Mitchell may not be the prime choice for a new Chairman, but it was done on such short notice. If you stop to think about it, its great that they split the roles so quickly, and hopefully, they'll continue to make positive progress.

I think, reading between the lines, they decided Mitchell would be the Chairman before the meeting, if the need arose. Then, at the meeting Mitchell's 24% withold votes have made them think again.

I've been looking for the article that called him a "acting chairman" but cannot find it. But I'm sure I read it somewhere. The best I can find at the moment is an article mentioning some of the board had reservations about appointing Mitchell after the vote.

Oh, and apparently Mitchell has stated in the past he didn't want to be the chairman. I don't think that he will stay for long.

[Joshua Clinard]

Did anyone see Jay Leno last night? They had a clip of Iraqi's pulling down the Saddam statue with Eisner's face on the statue. It's was freakin hillarious.

[karlsen]

wow, I would give much to see that.

[Grunches]

I agree that would have been really funny!

[Jack]

Yet again, Leno was making fun of Eisner last night. He said Eisner met with angry shareholders at Sleeping Beauty's castle in Disneyland, and went on to show "footage of what happened". It was a clip from an old movie, in which all these townsfolk with pitchforks and torches chases this guy to the top of a building, where he starts to shrow flaming bags down at them. That guy has Eisner's head put on him.