Forum Search Button Mouseke-Calendar Forum Memberlist Button ModEARator Team Forum Help Button
This is the Vault: Disney Echo archives. The new Disney Echo is now open!
...Now accepting registration for new members...

» Welcome, Guest
[ Log In ˚◦˚ Register It's free! Only takes 30 seconds! ]

Pages: (9) Jump to first page Previous Page 1 2 [3] 4 5 6 7 8 ... Next Page Jump to last page

[ Mouseke-Track this topic :: MickEmail this topic :: Print this topic ]

Reply to Topic New Topic New Poll
Topic: Roy Disney quits/Eisner tries to erase Roy's name?, Roy's signature won't be on Wave 3 DVDs?< Next Oldest | Next Newest >

CarolKoster Offline

Disney EchoEar Grand Mouseter


EchoEar PipEchoEar PipEchoEar PipEchoEar PipEchoEar Pip

Group: Members
Posts: 5358
Joined: Aug. 2001
Posted: Nov. 30, 2003 11:19 am/pm Quote

From Reuters News Service as placed on CBS Marketwatch.com, adds some details.  Begin quoting:

DIS 23.09 +0.01 +0.04% Vol:1,950,500 12:00am 11/28/03

UPDATE 2-Roy Disney forced out of Disney, wants Eisner to go
11/30/2003 9:57:37 PM

(Recasts, adds Disney comment, byline, previously NEW YORK)

By Peter Henderson

LOS ANGELES, Nov 30 (Reuters) - Walt Disney Co. (DIS) said on Sunday it was forcing Roy Disney off the board due to its mandatory retirement age policy, removing the last Disney family member from the board and a prominent critic of Chairman and Chief Executive Michael Eisner.

Clearly stung, Roy Disney said he would go and said Eisner should step down, a letter obtained by the Wall Street Journal showed.

The move may be the last act of a showdown between Eisner, who has led the company for nearly 20 years, and the man who recruited him and then became a chief critic.

"It is my sincere belief that it is you who should be leaving and not me," Roy Disney told Eisner in the letter dated Nov. 30, announcing he was stepping down from the board and his job as head of animation at the company named after his uncle.

George Mitchell, presiding director of the board, said in a statement that Roy Disney and two other directors, Thomas Murphy and Raymond Watson, would have to leave because of the mandatory retirement age, which is 72.

Disney will by 74 by January, when the board is expected to pick a new slate of directors.

The board's nominating committee, which had waived the retirement age cap in the past, had decided to apply the rule, Mitchell said.

"It is unfortunate that the Committee's judgment to apply these unanimously adopted governance rules has become an occasion to raise again criticisms of the direction of the Company, and calls for change of management, that have been previously rejected by the Board," Mitchell added in his statement.

Roy Disney, who led a 1984 restructuring and recruitment of Eisner, cited complaints about Eisner's leadership, including the performance of Disney's ABC television networks and its theme parks in the letter.

Disney said company performance had failed in the last seven years under Eisner's leadership. Other investors echoed Roy Disney's complains in recent years, but results have improved recently and shares have risen sharply this year.

An associate of Roy Disney who sits on the board, Stanley Gold, was not affected by the age cap.

Roy Disney, the nephew of company founder Walt Disney, in August said he struck a deal to sell more than 40 percent of his stake in the company, in which he was the largest individual shareholder.

Disney will be left with about 10 million shares, or 0.5 percent of the stock, less then the 14 million shares Eisner had in January. The deal in August allowed Disney to keep voting control of his stock for five years.

A spokesman for Roy Disney was not immediately available to comment on Sunday.

© Reuters 2003.

End of quoted material.


--------------
Carol Koster
Back to top
Profile PM 

CarolKoster Offline

Disney EchoEar Grand Mouseter


EchoEar PipEchoEar PipEchoEar PipEchoEar PipEchoEar Pip

Group: Members
Posts: 5358
Joined: Aug. 2001
Posted: Nov. 30, 2003 11:29 am/pm Quote

I've been reading Mouse Planet and Laughing Place.  Some of the people posting over on those sites speculate that Roy Disney may be off the Board at Disney but he's not out.  He still owns millions of shares of stock.  He could be in a position same as in 1984 when he resigned from the Board at Disney at that time, too, in order to get then CEO Ron Miller (Walt Disney's son-in-law) to resign so Michael Eisner and Frank Wells could come on board.  Others speculate a proxy fight might take place at the next shareholders' meeting (early 2004).

I didn't catch all of what Matt Drudge had to say in his radio talk show.  But Drudge did rather innocently wonder out loud why Roy Disney would want to resign when the whole Disney company seemed to be in the process of turning itself around (movies making a profit, people returning to the parks, etc.).  Then Drudge cynically brought up the brouhaha over "Bad Santa" (a very alternative look at who Santa Claus is, recently brought out that Disney was embarrassed by the film in light of Disney's family-friendly public image ) .

What an evening!  Just when you thought it was safe to eat the last of the Thanksgiving leftovers and have what's left of a quiet weekend to rest up after eating and shopping and movie-going, then this bombshell about Roy Disney drops.

Anyone else with comments, thoughts, opinions, reactions, support, anything to offer...  Feel free to post it here!  Including any additional news, do please post.


--------------
Carol Koster
Back to top
Profile PM 

CHarrower Offline

Disney Echo Founder


EchoEar PipEchoEar Pip

Group: Members
Posts: 8
Joined: Aug. 2003
Posted: Nov. 30, 2003 11:53 am/pm Quote

Carol, you're right (as always)...

It is Frank Welles...now I'm going to be wondering who Jeffrey Welles was, and how he got into my Disney Encyclopedia (of course, that's a book in my head, so it might just be the result of too much tryptophane from this weekend! ).

Nevertheless, it's going to be a very bumpy ride.  I'm going to go dig out my copy of "Storming The Magic Kingdom", and remember how it all went down the first time.  Looks like we're going to ride this carousel again very soon.

And here I was having high hopes for my stock value to soar...guess I'll just count on the Wal-Mart stock to keep it's work up... :hurt:


--------------
Chris

Back to top
Profile PM WEB 

RichKoster Offline

ModEARator




Group: Disney EchoEar Grand Mouseter/AdministratEAR
Posts: 5119
Joined: Aug. 2001
Posted: Dec. 01, 2003 3:03 am/pm Quote

Ironically, Carol and I just bought 100 shares of Disney stock last week, before the profit statement came out and the stock went up. I bet the stock price drops on Monday.

--------------
RichKoster, Disney Echo modEARator
Back to top
Profile PM WEB MSN YIM 

RichKoster Offline

ModEARator




Group: Disney EchoEar Grand Mouseter/AdministratEAR
Posts: 5119
Joined: Aug. 2001
Posted: Dec. 01, 2003 3:53 am/pm Quote

According to Jim Hill at JimHillMedia.com,
Members of Disney's board of directors met this summer with Michael Eisner and asked him for the good of the corporation to consider stepping down, which he eventually allegedly agreed to, with certain conditions of his own: Eisner would be the one to decide when and where he leaves Disney. Supposedly all agreed that would be September 2004, the 20th anniversary of his arrival at the company -- but that he might have made the announcement then, about stepping down in spring 2005. That would be the start of "Disney's Golden Celebration" and Eisner would be able to make one final trip around the globe and then kick off Disneyland's 50th anniversary celebration.

Jim writes, "But now that Roy's made his "Eisner Must Resign Now!" effort public, Disney's board members are concerned that -- in order to save face with his friends in Hollywood -- Michael may now decide to dig in his heels. Attempt to hang around for the full length of his contract with the Walt Disney Company. Which doesn't actually expire 'til 2006."

Full details at JimHillMedia.com.


--------------
RichKoster, Disney Echo modEARator
Back to top
Profile PM WEB MSN YIM 

CarolKoster Offline

Disney EchoEar Grand Mouseter


EchoEar PipEchoEar PipEchoEar PipEchoEar PipEchoEar Pip

Group: Members
Posts: 5358
Joined: Aug. 2001
Posted: Dec. 01, 2003 9:14 am/pm Quote

Before the opening bell Disney stock is up fractionally on the news of Roy Disney's departure from the Board of Directors of Disney.  Overseas in London trading in Disney stock was very light.  An analyst for Credit Suisse says one of the things that must be resolved is the succession issue for Michael Eisner, CEO (means someone needs to be named and groomed who will lead the company when Michael Eisner retires or should Eisner die or become incapacitated while CEO).  

On CNBC they had the Wall Street Journal writer who broke the story about Roy Disney's resignation, last name is Elfman.  Elfman said, among other things, that Disney has instituted a strict code of conduct on its Board in the wake of all the corporate business and governance scandals of the last few years, which includes a mandatory retirement age of 72.  Elfman also said that when Roy Disney and fellow Disney Board member Stanley Gold have criticized Michael Eisner in the past, neither of them offered alternative suggestions for what they think should be done iin managing the Disney company better, all they offered were just criticisms.  Elfman sees the same thing in Roy Disney's parting letter, criticism with no ways offered for doing things better as Roy Disney would see it.  

The discussion among the anchors and guest stock analyst on CNBC, after Elfman's appearance, mentioned that Roy Disney, while still having a lot of shares in the company and still maintains voting rights over the block of shares he sold earlier this year, does not have enough of a percentage of ownership of stock to make that much of a difference now that he is outside the company.  They point out that Disney's recently instituted board governance rules are rather strictly enforced, when perhaps considering the experience and expertise of those being asked to leave due to their age (Roy Disney, Ray Watson and the man from Cap Cities) the rules should be interpreted more to be like "guidelines".  [Now doesn't that sound like what the pirate Barbossa told Elizabeth Swann in "Pirates of the Caribbean: Curse of the Black Pearl" about the Pirates' Code ? ]  The panel said it would take ten people to replace Mr. Murphy, the man who had headed up Cap Cities/ABC at the time Disney took it over, that's how much expertise Murphy is said to have and they said it's more too bad Murphy was leaving given how much help ABC needs to improve in the ratings.  They also said it was doubtful Roy Disney could gather much shareholder support to get Michael Eisner out.  Not very many shareholders hold huge blocks of Disney stock, mostly small shareholders, and the stock this year has shown very good improvement vs. the past few years when it was down.  They said Eisner is responding to earlier criticism of him and his actions and actions of the company have resulted in a turnaround which should please shareholders and blunt any shareholder revolts against the CEO.  

Now, with all that said, I would point you to Wall Street guru Peter Lynch, who used to direct the successful Fidelity Magellan mutual fund and wrote a book called "One Up on Wall Street".  Part of Lynch's philosophy in choosing stocks to invest in is not just to read balance sheets and stock reports, but actually use that company's products, shop in it's stores, experience it as consumers do.  Based on that model, Disney fans may drool over this character or that movie, or enjoy visiting theme parks all the time to the exclusion of all else.  But we fans also see the Disney's company's products and services all the time over the long haul, and we have long memories.  We know the difference between "new product" of Walt's time, the time after he died, the time shortly after Michael Eisner took over, and the time after Frank Wells died and Paul Pressler headed theme parks, for instance.  We note how things stayed the same or changed for the better or worse.  As I read on other sites people agree with Roy Disney's words to Michael Eisner, not 100% but very high percentage majority.  However it still has to be played out 1) Who will be placed on the Disney Board to replace Disney, Watson and Murphy, and 2) Where Disney goes from here, and 3) Just when will Michael Eisner step down, and is he digging in his heels or is he trying to repair past mistakes, and 4) It's true:  It's one thing to gripe and criticize, but putting people in strategic places, making strategic decisions, following through and implementing those decisions, adequately funding new people and new decisions, adequately funding new attractions and ongoing maintanance, and whether a fickle market allowed to slide away will be lured back long term, and putting responsible and meaningful and ongoing oversight over all this....  As the saying goes, aye, there's the rub.

Rich says CNBC is trying to get interviews with Michael Eisner and others at Disney.  Well, aren't all the financial press trying to do that, too?  With a Board of Directors meeting already set early this week in New York, should be interesting.  Monitor financial news media for the latest.

Anyone with comments, suggestions, opinions, reactions?


--------------
Carol Koster
Back to top
Profile PM 

CarolKoster Offline

Disney EchoEar Grand Mouseter


EchoEar PipEchoEar PipEchoEar PipEchoEar PipEchoEar Pip

Group: Members
Posts: 5358
Joined: Aug. 2001
Posted: Dec. 01, 2003 9:35 am/pm Quote

Another thing the panel on CNBC talked about this morning:
The suit by stockholders protesting how Michael Ovitz was hired and fired a few years ago.  Ovitz at the time was said to be a "rainmaker", someone with big Hollywood connections to bring stars and deals to Disney for movies, etc.  Well, once Ovitz got in there he was given a cushy title but no responsibility.  Nothing happened on his watch and after a very short time it was agreed to get Ovitz out of there/he wanted to leave.  So, after only being at Disney a very short time I think less than a year, Ovitz got one heck of a Golden Parachute compensation package, very lucrative, for hardly doing any work.  That stuck in Disney shareholders' craw and they filed suit in Delaware about it.  The panel on CNBC this morning said a few weeks ago the judge in that case ruled the case may proceed to trial.  The panel on CNBC this morning said look for Michael Eisner to take the stand, for how laxly the Disney Board operated back then, accepting verbal promises and handshake-type deals when new governance rules would be more strict and in the open and in writing, etc.  This case, the panel agreed, would be more explosive for Disney than Roy Disney's resignation.

Some on other Disney fan site discussion areas are suggesting and speculating that Roy Disney could combine his voting block with other large shareholders, such as the Bass Brothers, and attempt to force some change at Disney.  They also suggest and speculate that given the mandatory retirement age from the Board at age 72, Roy could have gone quietly but decided not to.  They suggest and speculate that Roy Disney can do carefully selected media interviews now that he is out and "free" to keep his message and opinions out in the public arena rather than behind closed Board of Directors doors.

Opening on Wall Street Disney shares are down.


--------------
Carol Koster
Back to top
Profile PM 

RichKoster Offline

ModEARator




Group: Disney EchoEar Grand Mouseter/AdministratEAR
Posts: 5119
Joined: Aug. 2001
Posted: Dec. 01, 2003 10:03 am/pm Quote

From the website of ABC News (ironically, owned by Disney), I now present an Adobe Acrobat pdf version of Roy Disney's resignation letter. It even shows his signature.

As I write this at 10 am Eastern time, Disney stock went up slightly a few minutes ago but currenly the stock ticker shows Disney dropping again, down 0.09 (0.39%).


--------------
RichKoster, Disney Echo modEARator
Back to top
Profile PM WEB MSN YIM 

RichKoster Offline

ModEARator




Group: Disney EchoEar Grand Mouseter/AdministratEAR
Posts: 5119
Joined: Aug. 2001
Posted: Dec. 01, 2003 10:11 am/pm Quote

...and now Disney stock is up again: 0.11 (0.48%). It is probably going to be a very interesting day, with up and down swings for Disney all day long. But what do I know.
;)


--------------
RichKoster, Disney Echo modEARator
Back to top
Profile PM WEB MSN YIM 

RichKoster Offline

ModEARator




Group: Disney EchoEar Grand Mouseter/AdministratEAR
Posts: 5119
Joined: Aug. 2001
Posted: Dec. 01, 2003 10:22 am/pm Quote

The latest on the stock ticker now shows Disney up 0.21 (0.91%).

--------------
RichKoster, Disney Echo modEARator
Back to top
Profile PM WEB MSN YIM 
83 replies since Nov. 30, 2003 6:39 am/pm < Next Oldest | Next Newest >

[ Mouseke-Track this topic :: MickEmail this topic :: Print this topic ]

Pages: (9) Jump to first page Previous Page 1 2 [3] 4 5 6 7 8 ... Next Page Jump to last page
Reply to Topic New Topic New Poll




Featured Sponsors of the Disney Echo:
>
Your Ad Here!
Disney Ink Shop

© 2007 Rich Koster & FANtasEARS Disney Fan Club & Disney Echo. The Disney Echo is for like-minded individuals who gather here to discuss all aspects of the Walt Disney Co. All participants are welcome. We're not affiliated with nor endorsed by The Walt Disney Co., so you are free to share your opinions and join the fun Disney Spirit without having to toe the company line. The Disney Echo and FANtasEars Fan Club are not responsible for any damages that may be a result of the use of the information supplied on these pages. The viewer agrees to this by viewing the pages. The words & phrases "Disney Echo," "Disney EchoEars," "EchoEars," and "MousekeEars" are ©2007 Rich Koster.
Our Privacy Statement


Get FREE FANtasEARS MickEmail
Get FREE MickEmail And Hear Mickey's EarMail!


A Proud Member of

The FANtasEARS Disney Fan Club and Disney Echo has been visited times by Disney fans since June 18, 1998. We're glad you dropped by!
Disney.comFANtasEARS Disney Fan
Club The pages and images on this web site are ©2007 Rich Koster, except for Disney Character images & logos copyrighted by The Walt Disney Co.
All rights reserved.