Disney's Eisner gets shareholder support at meeting
By Shawn Regan, Reuters
MINNEAPOLIS, Feb 11 (Reuters) - Walt Disney Co.'s board of directors, including Chief Executive Michael Eisner, were easily re-elected at an upbeat annual meeting on Friday, a sharp turn from last year's widespread shareholder protest.
Eisner, whose re-election to the board was opposed by 45 percent of votes cast at the 2004 event, on Friday won 92.2 percent, while other directors scored slightly more, according to results read to shareholders.
Donald Duck and other characters waited outside the meeting to take pictures with fans and shareholders, which was clearly the highlight for many.
President Bob Iger, who was supported by 94.6 percent of votes in the preliminary count, was given equal footing with Eisner as the two gave a joint presentation to an audience of hundreds of shareholders, many of whom left after the presentation and before the results of the votes were announced.
Iger is vying to succeed Eisner. He is the only internal candidate, although Chairman George Mitchell, who took his job last year after the board stripped the role from Eisner, was at pains to say the search was open and would be fair.
He told the meeting the board was on track to name its choice by June.
"I'd like Eisner gone," said one man from Minneapolis, who wore a skunk-skin cap and accompanied his teenage son. But the shareholder, who declined to give his name, said he expected a fair search, given improvement and changes on the board.
"There are enough outsiders on the board at this point," he said, adding that he thought Iger would be a capable CEO.
Others praised Eisner, and there were no boos for company officials this year. Instead the audience frequently applauded the managers. Roy Disney and Stanley Gold, who sparked the revolt last year, did not actively protest.
A board-supported long-term compensation plan passed, while a shareholder proposal recommending measures to stop Disney from paying above-market rates to buy off companies trying to take it over -- greenmail -- passed despite the board's opposition.
Mitchell said directors supported the point of the non-binding proposal and would clarify their position on greenmail soon.
Mitchell was opposed by 6.9 percent of votes cast.
Roy Disney and Stanley Gold had said this year they would be withholding support for the board due to lack of clear progress finding a replacement for Eisner.
State funds which last year opposed key board members were less confrontational this year. The nation's largest fund, the California Public Employees' Retirement System, opposed Eisner but supported the rest of the board, while New York state retirement funds voted for all directors.
(Additional reporting by Peter Henderson in Los Angeles)
02/11/05 21:30 ET
By Shawn Regan, Reuters
MINNEAPOLIS, Feb 11 (Reuters) - Walt Disney Co.'s board of directors, including Chief Executive Michael Eisner, were easily re-elected at an upbeat annual meeting on Friday, a sharp turn from last year's widespread shareholder protest.
Eisner, whose re-election to the board was opposed by 45 percent of votes cast at the 2004 event, on Friday won 92.2 percent, while other directors scored slightly more, according to results read to shareholders.
Donald Duck and other characters waited outside the meeting to take pictures with fans and shareholders, which was clearly the highlight for many.
President Bob Iger, who was supported by 94.6 percent of votes in the preliminary count, was given equal footing with Eisner as the two gave a joint presentation to an audience of hundreds of shareholders, many of whom left after the presentation and before the results of the votes were announced.
Iger is vying to succeed Eisner. He is the only internal candidate, although Chairman George Mitchell, who took his job last year after the board stripped the role from Eisner, was at pains to say the search was open and would be fair.
He told the meeting the board was on track to name its choice by June.
"I'd like Eisner gone," said one man from Minneapolis, who wore a skunk-skin cap and accompanied his teenage son. But the shareholder, who declined to give his name, said he expected a fair search, given improvement and changes on the board.
"There are enough outsiders on the board at this point," he said, adding that he thought Iger would be a capable CEO.
Others praised Eisner, and there were no boos for company officials this year. Instead the audience frequently applauded the managers. Roy Disney and Stanley Gold, who sparked the revolt last year, did not actively protest.
A board-supported long-term compensation plan passed, while a shareholder proposal recommending measures to stop Disney from paying above-market rates to buy off companies trying to take it over -- greenmail -- passed despite the board's opposition.
Mitchell said directors supported the point of the non-binding proposal and would clarify their position on greenmail soon.
Mitchell was opposed by 6.9 percent of votes cast.
Roy Disney and Stanley Gold had said this year they would be withholding support for the board due to lack of clear progress finding a replacement for Eisner.
State funds which last year opposed key board members were less confrontational this year. The nation's largest fund, the California Public Employees' Retirement System, opposed Eisner but supported the rest of the board, while New York state retirement funds voted for all directors.
(Additional reporting by Peter Henderson in Los Angeles)
02/11/05 21:30 ET
