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| Disney
CEO Michael Eisner |
The decision came after 43 per cent of shareholders withheld their
votes from Eisner, who has been blamed by some for the lackluster
performance of the media-entertainment powerhouse in recent years.
According to a media report, the vote sent shock waves through
corporate America and marked the strongest such protest against
an incumbent chief executive ever, signaling Disney's concession
was unlikely to satisfy shareholders campaigning for Eisner's removal.
Disney's board said that while it recognised that some shareholders
were calling for Eisner's ouster, it was confident that the entertainment
conglomerate's financial results would validate its support of management
and current strategy.
The Disney board was quoted in media reports saying that, "While
making this change in governance, the board remains unanimous in
its support of the company's management team and of Michael Eisner,
who will continue to serve as chief executive officer."
One media report said that in the meeting, the board also said
that Comcast's takeover proposal was not in the best interest of
the company and its shareholders. It also said it that it was open
to looking at a "reasonable proposal."
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| Stanley
Gold and Roy Disney who wanted Eisner out |
However it is believed that this speedy move probably won't please
Roy Disney and his supporters. The problem, according to Disney
and fellow axed board member Stanley Gold, is that the current board
was hand-picked by Eisner with the not-too-surprising result that
they tended to rubber stamp his decisions. Hence an independent
chairman was sought from outside.
Taking advantage of this sudden move and decision, Comcast had
another go at bidding for the company which was however dismissed.
So it looks like Disney is going to be in the news for a while now.
(Picture courtesy: AP)
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