Asks company for tally on 401(k) employee ballots
By Russ Britt & Jon Friedman, CBS.MarketWatch.com
Last Update: 10:17 AM ET Mar 24, 2004
LOS ANGELES (CBS.MW) -- Roy Disney wants to know how many employees of the company founded by his uncle voted to remove Chief Executive Michael Eisner in a recent no-confidence vote.
An attorney for Roy Disney released a letter Wednesday that was sent to the Walt Disney Co. (DIS), asking for the percentage of votes in the company's 401(k) plan cast to remove Eisner.
Although 43.4 percent of all shareholders voted to remove Eisner from the board -- a stinging indictment of the longtime Disney chief -- Roy Disney believes a much larger percentage of company employees voted to remove Eisner.
"The No vote by 401(k) plan participants on the re-election of Mr. Eisner is rumored to be in excess of 70 percent of the shares held in the Disney share plan," David K. Robbins, attorney for Roy Disney, said in a letter to company lawyer Donald J. Wolfe.
Disney officials could not be reached for immediate comment.
Eisner stepped down as chairman of the company after the annual meeting March 3 in Philadelphia in which shareholders resoundingly cast votes of no confidence based on his management of the company over the past few years.
George Mitchell, a board member and former U.S. senator from Maine, succeeded Eisner as chairman. Eisner remained CEO, however.
A tally of the employee vote could be critical for Roy Disney, who still is campaigning to get Eisner out of the company entirely. If a large percentage of Disney employees want Eisner to leave, then the company's board may be pressured to also replace him as CEO.
The company's 401(k) plan is administered by Fidelity and involves 28 million shares, Robbins said. Robbins said in his letter that Disney company officials have told members of the media that it does not know the tally of 401(k) votes.
Fidelity, however, has stated that it has told the company twice what the tally was, according to Robbins.
Roy Disney along with another former board member, Stanley Gold, has charged Eisner with poor management and blamed him individually for the company's oft-low stock price.
Disney, a Dow 30 component, has countered by saying that Eisner has done a good job in leading the company, as seen by its robust stock-market performance over the past year.
Roy Disney and Gold have helped spark a grassroots movement against Eisner. The turning point, perhaps, came several weeks ago when Pixar (PIXR), the creative force behind such animated Disney hit movies as "Toy Story" in 1995 and "Finding Nemo" last year, abruptly broke off contract negotiations with the entertainment giant.
Eisner was held responsible for Pixar's resentment and his critics blasted him for not being able to maintain Pixar's confidence.
Disney shares were off 16 cents to $24.94 in early trading Wednesday.
By Russ Britt & Jon Friedman, CBS.MarketWatch.com
Last Update: 10:17 AM ET Mar 24, 2004
LOS ANGELES (CBS.MW) -- Roy Disney wants to know how many employees of the company founded by his uncle voted to remove Chief Executive Michael Eisner in a recent no-confidence vote.
An attorney for Roy Disney released a letter Wednesday that was sent to the Walt Disney Co. (DIS), asking for the percentage of votes in the company's 401(k) plan cast to remove Eisner.
Although 43.4 percent of all shareholders voted to remove Eisner from the board -- a stinging indictment of the longtime Disney chief -- Roy Disney believes a much larger percentage of company employees voted to remove Eisner.
"The No vote by 401(k) plan participants on the re-election of Mr. Eisner is rumored to be in excess of 70 percent of the shares held in the Disney share plan," David K. Robbins, attorney for Roy Disney, said in a letter to company lawyer Donald J. Wolfe.
Disney officials could not be reached for immediate comment.
Eisner stepped down as chairman of the company after the annual meeting March 3 in Philadelphia in which shareholders resoundingly cast votes of no confidence based on his management of the company over the past few years.
George Mitchell, a board member and former U.S. senator from Maine, succeeded Eisner as chairman. Eisner remained CEO, however.
A tally of the employee vote could be critical for Roy Disney, who still is campaigning to get Eisner out of the company entirely. If a large percentage of Disney employees want Eisner to leave, then the company's board may be pressured to also replace him as CEO.
The company's 401(k) plan is administered by Fidelity and involves 28 million shares, Robbins said. Robbins said in his letter that Disney company officials have told members of the media that it does not know the tally of 401(k) votes.
Fidelity, however, has stated that it has told the company twice what the tally was, according to Robbins.
Roy Disney along with another former board member, Stanley Gold, has charged Eisner with poor management and blamed him individually for the company's oft-low stock price.
Disney, a Dow 30 component, has countered by saying that Eisner has done a good job in leading the company, as seen by its robust stock-market performance over the past year.
Roy Disney and Gold have helped spark a grassroots movement against Eisner. The turning point, perhaps, came several weeks ago when Pixar (PIXR), the creative force behind such animated Disney hit movies as "Toy Story" in 1995 and "Finding Nemo" last year, abruptly broke off contract negotiations with the entertainment giant.
Eisner was held responsible for Pixar's resentment and his critics blasted him for not being able to maintain Pixar's confidence.
Disney shares were off 16 cents to $24.94 in early trading Wednesday.
