Disney Board Criticized for Lack of Action

(April 30, 2004 - NEWSdial.com) Roy E. Disney and Stanley P. Gold are accusing the Walt Disney Board of complete indifference to the will and interests of its shareholders by reaffirming its unconditional support for Michael Eisner and its commitment to the status quo.

In a statement, Disney and Gold said the following:

"The Board this week has demonstrated that this is truly a 'Do Nothing Eisner Board. It continues to march blindly and loyally behind Mr. Eisner, ignoring a staggering 45% no confidence vote against Mr. Eisner by the shareholders at the Company's Annual Meeting and a 72% no confidence vote from the Company's 401k Plan participants.

We are disappointed, but not surprised, that the Disney Board did not deal with the question of Mr. Eisner's succession, even though the company repeatedly stated in advance of the Board meeting that succession would be a central focus of the two-day board retreat. It appears that the only 'succession plan' is to keep Mr. Eisner as CEO for as long as he wants. Merely reviewing and supporting the existing in-house executive team is too little, and too late. The real solution to the Company's leadership problems must be sought elsewhere.

It appears that the Board remains untroubled about the chaos at its ABC Television Network, the poor performance of the ABC Family Channel, the recent disappointing performance of its film division, the loss of critical relationships such as Pixar and sagging employee morale. Additionally, a major national magazine recently named Mr. Eisner one of the worst CEOs in the nation, giving him a grade of 'F'.

Notwithstanding these facts, this board has participated in Michael Eisner's costly lobbying campaign to preserve his job. It really makes you wonder, what it will take for this Board to act independently and responsibly on behalf of the Company's shareholders.

Should the Board continue to remain unresponsive to its shareholders, we are confident we can put together a Board that will act in the shareholders' interests. The sad reality for Disney shareholders is that they have a 'lame duck CEO' and a 'Do Nothing Board' -- both oblivious to the serious decline in long-term performance. Once again, we ask, 'what will it take to get this Board to do the right thing?'"

Other Disney Related Articles:

Over 70% of Voting Disney 401k Holders Cast "No Confidence" on Michael Eisner

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