Some Disney shareholders are seeing red as Disney CEO Michael Eisner pitches his No. 2, Bob Iger, as a possible successor.
While Iger gets kudos for leading Disney's international expansion, and boosting units like the Disney Channel and Disney's consumer products division, he still hasn't fixed a struggling ABC, mired in fourth place in the ratings.
The Magic Kingdom needs a more seasoned outsider to improve profits, some big investors said.
"Absent of any improvement at ABC, I can't see how he could justify a bigger role," said Angela Kohler, media analyst at Federated Investors. "Is this the solution investors want? No."
The issue of who will succeed Eisner - who faced a bruising 45% no confidence vote at the company's shareholder meeting in March - is expected to be addressed at a Disney board meeting set for Sept. 20.
Eisner's current contract expires at the end of 2006 and Iger's ends at the end of next year.
Cynthia Richson, a corporate governance executive with the Ohio Public Employees Retirement System and a vocal Disney critic said, "we don't know enough about" Iger.
Richson, along with a coalition of heads of large pension funds, has urged the board to outline succession plans.
The group also is expected to suggest a candidate to join the board as an independent director.
"We all feel the company should have an objective process in place and hire a recruiting firm," Richson told the Daily News.
Nonetheless, Disney execs said Iger, a one-time TV weatherman and former ABC Entertainment chief, is gaining stature after years of being overlooked.
One Disney honcho noted the company needs an insider who understands the firm's unique heritage.
The Disney No. 2 has lately told institutional investors he should be considered for the job.
"There seems to be a growing buzz about him," a source said. "People are seeing his contributions."
"I'm certain he knows the company well," agreed Oppenheimer media analyst Peter Mirsky. "But the message from the March shareholder meeting was, 'We'd like to see new blood.' "
Meanwhile, Disney said Hurricane Frances would likely trim profits by about a penny a share.
