LOS ANGELES, Sept 21 (Reuters) - Walt Disney Co's (DIS.N: Quote, Profile, Research) board of directors said on Tuesday it planned to find a replacement for Chief Executive Michael Eisner by next June and then search for a new chairman, setting out a timetable for a change of leadership at the company after more than a year of shareholder protests.
In a statement after a regular meeting, the board said Chief Operating Officer and President Bob Iger would be the only internal candidate considered to succeed Eisner as CEO, competing against external candidates in a process to be aided by an executive search firm hired by Disney.
The statement marked the board's first concrete public plan to replace Eisner after more than a year of pressure to oust him and prove its independence from the chief executive, who on Tuesday celebrated 20 years leading the company.
Disney's board has frequently said it was planning for succession, but investors have clamored for details.
Disney expects more than 50 percent earnings growth this year, but critics say that the boom will not last and reflects a bounce-back from a bottom earlier this decade rather than new growth.
The board once again backed Eisner and Iger's leadership and said it expected double-digit earnings increases through 2007.
Disney Chairman George Mitchell, facing mandatory retirement because of his age, said he would step down in 2006 if he is reelected to the board next spring.
Eisner would stay at his post to help with the transition, once a successor is found, he said on a conference call after the board meeting.
The board said it looked forward to Eisner serving out his contract, which ends in September 2006, but Mitchell left open the possibility of an earlier departure.
"He will continue to be the chief executive officer until such time as the board determines it is appropriate for the new CEO to take office," Mitchell said. He later added that the board could find a successor before the June 2005 target date.
Critics of Eisner, including Stanley Gold and Roy Disney, nephew of founder Walt Disney, have said that some candidates for the top job at Disney might not apply if Eisner were to stay on after they joined the company.
Eisner kicked off the latest round of speculation on CEO succession earlier this month when he said he would step down after his contract ended.
Eisner lost his concurrent role as chairman in March after a contentious annual meeting that was widely seen as a referendum on his leadership. Mitchell said the board did not intend to reunite the two positions, although it did not rule it out either.
Mitchell also said that the board would not divulge the name of the search firm it selected or other information about the process until it found a successor.
But already a host of media and technology executives are considered contenders for the post, from Peter Chernin, Chief Operating Officer of News Corp Ltd.(NCP.AX: Quote, Profile, Research) to former Viacom Inc.(VIAb.N: Quote, Profile, Research) President Mel Karmazin to Yahoo Inc.(YHOO.O: Quote, Profile, Research) Chief Executive and Chairman Terry Semel and others.
The board also said that it had revamped executive pay policy to tie compensation closer to company performance, responding to criticism by some large state funds, including North Carolina.
In a statement after a regular meeting, the board said Chief Operating Officer and President Bob Iger would be the only internal candidate considered to succeed Eisner as CEO, competing against external candidates in a process to be aided by an executive search firm hired by Disney.
The statement marked the board's first concrete public plan to replace Eisner after more than a year of pressure to oust him and prove its independence from the chief executive, who on Tuesday celebrated 20 years leading the company.
Disney's board has frequently said it was planning for succession, but investors have clamored for details.
Disney expects more than 50 percent earnings growth this year, but critics say that the boom will not last and reflects a bounce-back from a bottom earlier this decade rather than new growth.
The board once again backed Eisner and Iger's leadership and said it expected double-digit earnings increases through 2007.
Disney Chairman George Mitchell, facing mandatory retirement because of his age, said he would step down in 2006 if he is reelected to the board next spring.
Eisner would stay at his post to help with the transition, once a successor is found, he said on a conference call after the board meeting.
The board said it looked forward to Eisner serving out his contract, which ends in September 2006, but Mitchell left open the possibility of an earlier departure.
"He will continue to be the chief executive officer until such time as the board determines it is appropriate for the new CEO to take office," Mitchell said. He later added that the board could find a successor before the June 2005 target date.
Critics of Eisner, including Stanley Gold and Roy Disney, nephew of founder Walt Disney, have said that some candidates for the top job at Disney might not apply if Eisner were to stay on after they joined the company.
Eisner kicked off the latest round of speculation on CEO succession earlier this month when he said he would step down after his contract ended.
Eisner lost his concurrent role as chairman in March after a contentious annual meeting that was widely seen as a referendum on his leadership. Mitchell said the board did not intend to reunite the two positions, although it did not rule it out either.
Mitchell also said that the board would not divulge the name of the search firm it selected or other information about the process until it found a successor.
But already a host of media and technology executives are considered contenders for the post, from Peter Chernin, Chief Operating Officer of News Corp Ltd.(NCP.AX: Quote, Profile, Research) to former Viacom Inc.(VIAb.N: Quote, Profile, Research) President Mel Karmazin to Yahoo Inc.(YHOO.O: Quote, Profile, Research) Chief Executive and Chairman Terry Semel and others.
The board also said that it had revamped executive pay policy to tie compensation closer to company performance, responding to criticism by some large state funds, including North Carolina.
Either way by the end of 2005 I predict Eisner will be long gone! YAY!!! :sohappy:
