From the USA Today:
Link to article
Eisner loses support of big investor, advisory firm
By Paul Davidson, USA TODAY
Walt Disney (DIS) Chairman and CEO Michael Eisner's bid to keep his job took a double-barreled blow Wednesday when he lost the support of both a large investor and an influential advisory firm.
Citing the company's weak performance and a lack of confidence in Eisner's "strategic vision," the California Public Employees' Retirement System said it will withhold its votes for his re-election. Disney's annual meeting is Wednesday in Philadelphia.
"We have lost complete confidence in Mr. Eisner's strategic vision and leadership in creating shareholder value in the company," said Sean Harrigan, president of the Calpers board of administration. Calpers, with 9.9 million shares, is the 29th-largest shareholder.
Just hours earlier, Glass Lewis, an independent research firm, recommended that shareholders withhold votes to re-elect Eisner and directors George Mitchell and Gary Wilson. While the board has made strides, the firm said, the three should pay for past mistakes.
"The Disney board has been notoriously insular, famously gullible and blindly loyal to Mr. Eisner," Glass Lewis said in a research report. "In our view, Disney's board has come a long way but not far enough."
Disney shares rose 34 cents to close at $26.30.
Two weeks ago, another independent adviser, Institutional Shareholder Services, said Eisner "still hasn't gotten it quite right." The recommendation to withhold votes from Eisner is "a signal to try a little harder," the ISS report said, calling him a "poster child" for the need to separate the chairman and CEO roles.
The developments bolster the campaign of two former directors, Roy Disney and Stanley Gold, to persuade shareholders to withhold votes from Eisner and three other directors at the annual meeting.
The pair say Eisner, CEO since 1984, has bungled management of the company the past decade and stifled board criticism.
Earlier this month, the board rejected a takeover bid from cable giant Comcast (CMCSA), saying the offer was too low and voicing support for Disney management.
Among other things, the Glass Lewis report cites a Securities and Exchange Commission probe into Disney's failure to promptly reveal several directors' possible conflicts of interest. Eventually, the data were disclosed, and Disney says it's negotiating a settlement with the SEC. The report also mentions a shareholder lawsuit challenging the severance package of former Disney president Michael Ovitz, who stepped down in 1996 after serving less than two years.
Contributing: Wire reports
Link to article
Eisner loses support of big investor, advisory firm
By Paul Davidson, USA TODAY
Walt Disney (DIS) Chairman and CEO Michael Eisner's bid to keep his job took a double-barreled blow Wednesday when he lost the support of both a large investor and an influential advisory firm.
Citing the company's weak performance and a lack of confidence in Eisner's "strategic vision," the California Public Employees' Retirement System said it will withhold its votes for his re-election. Disney's annual meeting is Wednesday in Philadelphia.
"We have lost complete confidence in Mr. Eisner's strategic vision and leadership in creating shareholder value in the company," said Sean Harrigan, president of the Calpers board of administration. Calpers, with 9.9 million shares, is the 29th-largest shareholder.
Just hours earlier, Glass Lewis, an independent research firm, recommended that shareholders withhold votes to re-elect Eisner and directors George Mitchell and Gary Wilson. While the board has made strides, the firm said, the three should pay for past mistakes.
"The Disney board has been notoriously insular, famously gullible and blindly loyal to Mr. Eisner," Glass Lewis said in a research report. "In our view, Disney's board has come a long way but not far enough."
Disney shares rose 34 cents to close at $26.30.
Two weeks ago, another independent adviser, Institutional Shareholder Services, said Eisner "still hasn't gotten it quite right." The recommendation to withhold votes from Eisner is "a signal to try a little harder," the ISS report said, calling him a "poster child" for the need to separate the chairman and CEO roles.
The developments bolster the campaign of two former directors, Roy Disney and Stanley Gold, to persuade shareholders to withhold votes from Eisner and three other directors at the annual meeting.
The pair say Eisner, CEO since 1984, has bungled management of the company the past decade and stifled board criticism.
Earlier this month, the board rejected a takeover bid from cable giant Comcast (CMCSA), saying the offer was too low and voicing support for Disney management.
Among other things, the Glass Lewis report cites a Securities and Exchange Commission probe into Disney's failure to promptly reveal several directors' possible conflicts of interest. Eventually, the data were disclosed, and Disney says it's negotiating a settlement with the SEC. The report also mentions a shareholder lawsuit challenging the severance package of former Disney president Michael Ovitz, who stepped down in 1996 after serving less than two years.
Contributing: Wire reports