EISNER ON NOTICE
By TIM ARANGO
The Clock Is Ticking For Michael Eisner.
A timetable appears to be emerging for the Disney chief to revive the company's fortunes, according to a source close to the board. This person says Eisner has roughly a year to get the company on track before the board would seek his ouster.
Meanwhile, two influential investors - Gordy Crawford of Capital Research and Management, and Stanley Gold, a Disney board member and chief of Shamrock Capital Advisors - are still trying to recruit a replacement for Eisner, according to another source.
The pair recently failed to recruit Mel Karmazin, Viacom's president and chief operating officer, to Disney, but they've lately renewed their efforts at luring a new top dog to Disney, the source said.
A Disney spokesman dismissed the one-year timetable, and said the board has no plans for a successor for Eisner.
Disney stock has cratered this year, on flagging ratings at its ABC broadcast television network and falling attendance at its theme parks. The lack of hit television shows at ABC has been a particular thorn in the company's side, and many see the fall season as key for Eisner's future.
The company's top brass held informal meetings with institutional investors in New York on Thursday and Friday to shore up confidence in the stock, which is off about 2 percent on the year. Analysts said nothing of significance came from the meetings, and indeed no statement was forthcoming from Disney, as would have been required by securities law if the company had disclosed any material information.
At the same time, gadfly investor Herbert Denton of Providence Capital set a meeting Sept. 17 for investors to air their concerns.
Denton has a history of proxy battles and taking on such large firms as Tyco, Aetna and Digital Equipment.
The meeting will take up such issues as a succession plan for Eisner, and will likely recommend an overhaul of Disney's board, said Denton. A group of shareholders representing about 20 percent of Disney's ownership will likely participate, he added.
"If I was management of the company, I'd want to try to get support of the big institutions ahead of the board meeting," Denton said.
Denton said Providence will take the grievances raised at the forum to Disney's board at a meeting within the next couple of weeks, shortly before Disney's full board is scheduled to meet on Sept. 23 to discuss a range of corporate governance issues and the strategic direction of the company.
Still, some disgruntled Disney investors said Disney's problems are so obvious and so well-discussed that further meetings are useless.
"I'm not going to participate because it's not going to accomplish anything," said Ted Parrish, director of investments at Atlanta-based G.W. Henssler, which owns about 250,000 Disney shares.
"It's just a gimmick. It will be just lip service."
By TIM ARANGO
The Clock Is Ticking For Michael Eisner.
A timetable appears to be emerging for the Disney chief to revive the company's fortunes, according to a source close to the board. This person says Eisner has roughly a year to get the company on track before the board would seek his ouster.
Meanwhile, two influential investors - Gordy Crawford of Capital Research and Management, and Stanley Gold, a Disney board member and chief of Shamrock Capital Advisors - are still trying to recruit a replacement for Eisner, according to another source.
The pair recently failed to recruit Mel Karmazin, Viacom's president and chief operating officer, to Disney, but they've lately renewed their efforts at luring a new top dog to Disney, the source said.
A Disney spokesman dismissed the one-year timetable, and said the board has no plans for a successor for Eisner.
Disney stock has cratered this year, on flagging ratings at its ABC broadcast television network and falling attendance at its theme parks. The lack of hit television shows at ABC has been a particular thorn in the company's side, and many see the fall season as key for Eisner's future.
The company's top brass held informal meetings with institutional investors in New York on Thursday and Friday to shore up confidence in the stock, which is off about 2 percent on the year. Analysts said nothing of significance came from the meetings, and indeed no statement was forthcoming from Disney, as would have been required by securities law if the company had disclosed any material information.
At the same time, gadfly investor Herbert Denton of Providence Capital set a meeting Sept. 17 for investors to air their concerns.
Denton has a history of proxy battles and taking on such large firms as Tyco, Aetna and Digital Equipment.
The meeting will take up such issues as a succession plan for Eisner, and will likely recommend an overhaul of Disney's board, said Denton. A group of shareholders representing about 20 percent of Disney's ownership will likely participate, he added.
"If I was management of the company, I'd want to try to get support of the big institutions ahead of the board meeting," Denton said.
Denton said Providence will take the grievances raised at the forum to Disney's board at a meeting within the next couple of weeks, shortly before Disney's full board is scheduled to meet on Sept. 23 to discuss a range of corporate governance issues and the strategic direction of the company.
Still, some disgruntled Disney investors said Disney's problems are so obvious and so well-discussed that further meetings are useless.
"I'm not going to participate because it's not going to accomplish anything," said Ted Parrish, director of investments at Atlanta-based G.W. Henssler, which owns about 250,000 Disney shares.
"It's just a gimmick. It will be just lip service."