-
Welcome to the WDWMAGIC.COM Forums!
Please take a look around, and feel free to sign up and join the community.
Roy O Disney Letter to Stockholders
- Thread starter all41
- Start date
General Grizz
New Member
But you have to realize that Roy is talking to the STOCK HOLDERS. If you go to savedisney, that's only a 1/6 of his website.
Ultimately, the stock holders care only about the buck (the big cheeses), and in order to get rid of Eisner, they have convince these guys in a way they can understand (and profit from).
Roy isn't about the buck (as seen in his extensive www.savdisney.com), while long-term, money will certainly be an issue.
goofyfan13
Well-Known Member
I have a question about voting no. Since I do own 50 shares and will be able to vote on this election. Would voting no, (and if Eisner stays in his spot at the top) by any chance effect my hopes of possibly becoming a CM in the future. If I attend college in Florida I wanted to work for Disney but by voting no, could that put a black mark on my resume, with background checks and all? Any help is appreciated, Thanks. 
NashvilleMouse
New Member
Originally posted by goofyfan13
I have a question about voting no. Since I do own 50 shares and will be able to vote on this election. Would voting no, (and if Eisner stays in his spot at the top) by any chance effect my hopes of possibly becoming a CM in the future. If I attend college in Florida I wanted to work for Disney but by voting no, could that put a black mark on my resume, with background checks and all? Any help is appreciated, Thanks.
Aren't the votes in secret?
goofyfan13
Well-Known Member
Thats what I thought, but my dad said that they can do background checks on those matters. I think he's wrong but I thought I would check with everyone in here cause you all would know better than he does. Im just a little paranoid I guess...:lookaroun
Woody13
New Member
For the sake of this discussion, let's assume that all 100% of the Disney shareholders (even the institutional investors) voted NO as requested by Roy and Stan. What would happen then? Would Eisner, George Mitchell, Judith Estrin and John Bryson all be kicked off the board? No, they would not leave the board of directors and here is why.
Enter the Dead-Hand Poison Pill! What is that? It's an anti-takeover device that prevents the acquisition of a company (and/or the removal of its board of directors) even if the majority of shareholders favor the action. Only the incumbent board members are allowed to make the change, or not, as they desire.
You and I as shareholders do not elect the board members or the CEO or anyone else in the company. Here is a quote from the Disney corporate governance guidelines:
"Selection of New Directors
The Board shall be responsible for selecting its own members. The Board delegates the screening process for new Directors to the Governance and Nominating Committee, with counsel from the Chairman of the Board."
For the full text look here:
http://disney.go.com/corporate/investors/governance/guidelines15.html
Now, for a real proxy fight, you must spend a bunch of money to line up the votes you need. A proxy fight is the same as a hostile takeover. Roy and Stan do not have the money, support or ability to takeover The Walt Disney Company. However, if they really want to seriously pursue this fight, then they need to put together their own list of board members and a replacement for Eisner now!
Just as in politics there are rules to follow to replace politicians. In the corporate world there are also rules to follow to replace board directors and CEO's.
MKCustodial
Well-Known Member
Woody, I suppose it's this simple: you don't wanna do squat because you feel it won't amount to anything, fine, that's your call. But why don't you let Roy and all these nice people gathered here vote "no" like they want to? At least they'll be showing the company what they think of the current management. And even if no changes will be made, I can assure you the press is gonna love it.
djmatthews
Well-Known Member
What are Roy's plans if these guys get booted? And what are the chances of the vote actually going against Eisner and his crew?
Like mentioned, the shareholder is only interested in $$$. I'm sure many of them couldn't care about the paint peeling off Main Street.
Roy has to present a solid, financially viable long term plan.
Like mentioned, the shareholder is only interested in $$$. I'm sure many of them couldn't care about the paint peeling off Main Street.
Roy has to present a solid, financially viable long term plan.
General Grizz
New Member
Keep in mind that it has only begun. As Roy has said, there is so much more to come!
NashvilleMouse
New Member
Everyone is right though. The board members do care about $$$. It is their job to make sure the company is profitable and that stock holders get dividends, etc.
Here is my opinion, do not be mad at me: The best way for Roy to fight back is not by saying "where's the magic" or "people at the parks just aren't happy".... although those arguments have some bearing, it won't have enough. Roy has to fight fire with fire and talk in the language of board members and stock holders... money. Roy will need to prove that the company is not as profitable with Eisner or that decisions that Eisner made were not ones in the best interest of Disney.
If Eisner is making the boardmembers (and everyone else) money, he will be around for a long time and us dreamers and imagineers will be the only ones to keep a sense of that magic alive. It will be a long fight.
Here is my opinion, do not be mad at me: The best way for Roy to fight back is not by saying "where's the magic" or "people at the parks just aren't happy".... although those arguments have some bearing, it won't have enough. Roy has to fight fire with fire and talk in the language of board members and stock holders... money. Roy will need to prove that the company is not as profitable with Eisner or that decisions that Eisner made were not ones in the best interest of Disney.
If Eisner is making the boardmembers (and everyone else) money, he will be around for a long time and us dreamers and imagineers will be the only ones to keep a sense of that magic alive. It will be a long fight.
DisneyFan 2000
Well-Known Member
That's exactly what he's doing right now!
Not entirely true! Although he has managed to make money, lately he has been a real dictator and a pain in the @$$. Lately his connections with other companies (Pixar, Lucas, and Spielbierg) have gone down hill! Most likely that if Roy won't manage to kick him out by the year 2006 the board of dictators (directors) will!
Pioneer Hall
Well-Known Member
Originally posted by goofyfan13
I have a question about voting no. Since I do own 50 shares and will be able to vote on this election. Would voting no, (and if Eisner stays in his spot at the top) by any chance effect my hopes of possibly becoming a CM in the future. If I attend college in Florida I wanted to work for Disney but by voting no, could that put a black mark on my resume, with background checks and all? Any help is appreciated, Thanks.
First of all...You vote is done by secret ballot. Just like voting for president. No one will know who you voted for expect for you.
Second of all...The first ammendment says that you have a freedom of speech. You are allowed to express yourself however you feel appropriate. So just because you don't like the upper managemtn of WDW doesn't mean they won't give you a job. Actually it would be illegal for them to do that. Just like the presidential race again, If you vote for the Democrat and the Republian wins, you aren't going to be deported or punished.
Third of all...Be realistic. Your 50 votes (1 for each share) is just a few in the Billion shares out there. So you will not have a major impact in the voting. You also need to remember that Disney is a major corporation. Even if they could do a background chack and see how you voted (which can't happen...so don't worry) you will be one CM among 55,000+ at WDW alone. Your CM position won't hinder on your Eisner position.
Finally...Eisner haters are everywhere in the company. Trust me, you wouldn't be the first. Think of all those Imagineers who get their budgets cut daily. The artists who don't get projects because everything is going to other companies (or they are just getting fired). If they were to fire the CM's who didn't like Eisner, you would probably see him running around the park starting the rides and selling turkey legs.
So to shorten all of this. Do what you wan't. But remember your choice will not affect you.
djmatthews
Well-Known Member
That's a very good point, I have been reading this thread without realising! :lol:
DisneyFan 2000
Well-Known Member
:lol: :lol: Funny how no-one noticed!
brisem
Well-Known Member
Proxy cards usually go out 45-60 days before the vote. So if you haven't received them yet, you should within the next week.
I agree with the minority--when you read into it the bottomline is the MONEY.
A couple of points in Roy's letter--they use 1994 a base for results, but correct me if I'm wrong wasn't that the year EuroDisney was opened? If so, you would expect your ratios to be below normal. It's the cost of opening a venture of that size.
The second thing is he mentioned the name rights given to Edison for the stadium. At that time Edison paid fair market value, so you really can't hold that against them.
As far as a proxy fight-Disney and Gold will probably only get 10% at most. They'll get the small investors, but the institutions and larger investor historical back the board in matters like this.
I think the biggest question for Philadelphie is where is the company focusing right now. In the last year, they sold the Angels, Celebration; selling the Mighty Ducks and Disney Stores.
So they are either refocusing on the Enterment area or raising capital for something.
I agree with the minority--when you read into it the bottomline is the MONEY.
A couple of points in Roy's letter--they use 1994 a base for results, but correct me if I'm wrong wasn't that the year EuroDisney was opened? If so, you would expect your ratios to be below normal. It's the cost of opening a venture of that size.
The second thing is he mentioned the name rights given to Edison for the stadium. At that time Edison paid fair market value, so you really can't hold that against them.
As far as a proxy fight-Disney and Gold will probably only get 10% at most. They'll get the small investors, but the institutions and larger investor historical back the board in matters like this.
I think the biggest question for Philadelphie is where is the company focusing right now. In the last year, they sold the Angels, Celebration; selling the Mighty Ducks and Disney Stores.
So they are either refocusing on the Enterment area or raising capital for something.