Shareholder vote question

[Wilt Dasney]

I've been reading a good bit about the upcoming meeting and a vote by shareholders on whether or not to retain Eisner and the current board.

What is the significance of this vote? Are its results binding, or is it just a public show of trust (or lack thereof) in current management by stockholders?

Thanks.

 

[Wilt Dasney]

*aherm*

Grizz?

Anybody??

 

[cherrynegra]

From what I understand, you need about %35 voting against the board in order to open the board up to a new slate of board members. Roy is hoping to get %20 because it's a number that cannot be ignored. Meaning that 20% of the shareholders are dissatisfied with the leadership. Below is a portion of an interview in USA TODAY that I copied here explaining Roy's strategy.

Q: What percentage of shareholders do you hope vote "no" against Eisner and three directors at Disney's annual meeting?

Gold: We're looking for 15% to 20%. If we hit 20%, it would be a big-time message.

Disney: That was what was voted against Steve Case (former chairman of AOL Time Warner) a few years ago. And you saw what happened there.

 

[Wilt Dasney]

Awesome! Thanks for the explanation.

 

[Woody13]

A Securities and Exchange Commission proposal under consideration would allow major shareholders to submit alternative board candidates if 35 percent of votes were withheld for company backed candidates in the previous year.

A 15% to 20% or 34% vote means very little. Roy and Stan are gearing up for next year. Einser's contract runs out as of September, 2006. One has to wonder about the Roy and Stan motives. Even if they got 35% at the March 3 meeting it would be over a year before anything could be done. Let's all keep a good watch on this soap opera.