Disney Vice Chairman Resigns From Board of Directors

[VolcanoJen]

This first appeared as a Drudge Report "Flash" earlier, but it's been confirmed now by the Associated Press. The Drudge story has juicier bits about Roy Disney's calls for Eisner's resignation.

http://www.washingtonpost.com/wp-dyn/articles/A23445-2003Nov30.html

LOS ANGELES -- Disney vice chairman Roy E. Disney has resigned from the media giant's board of directors, reportedly calling on chairman Michael Eisner to resign also.

Disney's resignation may be a pre-emptive move to avoid being forced off the board of The Walt Disney Co. The board's governance and nominating committee has decided not to recommend Disney for another term because he is over the mandated retirement age of 72, sources close to the company said Sunday.

<snip>

Disney and his closest board associate, Stanley Gold, have been among Eisner's most vocal critics as the company's stock price has declined and ratings have fallen at its ABC Television network.

[VolcanoJen]

1. NY Times link... more details

http://www.nytimes.com/2003/11/30/business/media/30CND-DISN.html?hp

Roy Disney Resigns and Urges C.E.O. Eisner to Follow Suit

Excerpt:

In a letter to Mr. Eisner, Mr. Disney also called for Mr. Eisner's resignation. In addition, Mr. Disney stepped down from his position as chairman of the feature animation division.

The resignation lays bare a sharp conflict in an entertainment and media company that has called its theme parks "the happiest place on earth."

"You well know that you and I have had serious differences of opinion about the direction and style of management in the company in recent years," Mr. Disney wrote to Mr. Eisner. "For whatever reason, you have driven a wedge between me and those I work with even to the extent of requiring some of my associates to report my conversations and activities to you. I find this intolerable."

Mr. Disney, the nephew of Walt Disney, who founded the company with Mr. Disney's father, Roy, noted that the nominating committee had excluded him from the slate up for election to the board of the publicly held company, "effectively muzzling my voice on the board."

[brook]

2. Roy Disney...

is 100 times the man and gentleman than his adversary. I've been waiting for Michael's fall from *Arrogrance Peak* for quite some time. That's one benefit of growing old...you get to see some of the *show* before the curtain closes.

[spinbaby]

3. I've been following Disney

These last years they've been trying to boost earnings by the time-tested methods of cutting costs to the bone while aquiring new business. Many of the new businesses are bust (go.com) and trying to do things cheap has led to stuff no one wants (California Adventure, Country Bears Movie).

http://www.miceage.com/ is doing a pretty good job keeping track of it.

[Lorien]

4. Letter and contact info

here: http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=105&topic_id=472919

[VolcanoJen]

5. Updated NY Times Article in Business Section

http://www.nytimes.com/2003/12/01/business/01DISN.html?hp

Leaving Board, a Disney Heir Assails Eisner

In a three-page letter that was hand-delivered to Mr. Eisner's Manhattan apartment, where the executive was spending the weekend, Mr. Disney complained that Mr. Eisner had done little to revive the Walt Disney Company over the last seven years and still had not decided who would be his successor. Mr. Eisner, who took over Disney in 1984, has been under increasing pressure over the company's sagging fortunes.

<snip>

Mr. Eisner declined to comment on the letter from Mr. Disney. But the presiding director, the former senator, George J. Mitchell, said in a statement on behalf of the board, "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."

<snip>

Mr. Disney backed Mr. Eisner and resigned in March of that year (1984), fiercely lobbying other board members to name Mr. Eisner chief executive. Mr. Eisner got the job, and Mr. Disney was reinstated in June.

[goforit]

6. Karma for a Bush supporter............(tisk, tisk)

Oh well.......

[VolcanoJen]

7. Text of Disney resignation letter up at Drudge.

Hate to post a Drudge link, but here goes...

http://www.drudgereport.com/flash1a.htm

Excerpt:

Dear Michael,

It is with deep sadness and regret that I send you this letter of resignation from the Walt Disney Company, both as Chairman of the Feature Animation Division and as Vice Chairman of the Board of Directors.

You well know that you and I have had serious differences of opinion about the direction and style of management in the Company in recent years. For whatever reason, you have driven a wedge between me and those I work with even to the extent of requiring some of my associates to report my conversations and activities back to you. I find this intolerable.

<snip>

Michael, I believe your conduct has resulted from my clear and unambiguous statements to you and the Board of Directors that after 19 years at the helm you are no longer the best person to run the Walt Disney Company. You had a very successful first 10-plus years at the Company in partnership with Frank Wells, for which I salute you. But, since Frank's untimely death in 1994, the Company has lost its focus, its creative energy and its heritage.

<snip>

In accordance with Item 6 of Form 8-K and Item 7 of Schedule 14A, I request that you disclose this letter and that you file a copy of this letter as an exhibit to a Company Form 8-K.

With sincere regret,

(Roy Disney signature)

cc: Board of Directors