Spirited News, Observations & Thoughts Tres

[the.dreamfinder]

I wonder which division or subsidiary is moving into this building?
http://gizmodo.com/disneys-epic-plan-to-save-a-terminal-from-las-oldest-511934530
http://www.ci.glendale.ca.us/government/packets/HPC_032513/7a.pdf

 

[The Empress Lilly]

I wonder which division or subsidiary is moving into this building?
http://gizmodo.com/disneys-epic-plan-to-save-a-terminal-from-las-oldest-511934530
http://www.ci.glendale.ca.us/government/packets/HPC_032513/7a.pdf

Wow, what an extraordinarily beautiful building. Props to Disney for trying to preserve that, for whatever motivation they may have.
You do have a knack for coming up with the most interesting Disney news!

Me, I'd move it brick by brick to Fla, rebuild it in the Cars Land plot in DHS, add Walt's plane to it, and have CM's in 30's stewardess costumes direct you to a ride called Plane Crazy.

 

[ParentsOf4]

Yeah but as far as I know, Iger and Rasulo have not started up a secret company and hired away Disney employees to work for them. Nor are they using studio tools, equipment, supplies and office space rent free. The shareholders seem to be pleased with the return on their investment. Walt, on the other hand, felt the shareholders deserved little and that's what he gave them. Until he got caught.

Iger and Rasulo and doing an old executive trick. Sell stock and then run to the executive compensation committee complaining that you lack sufficient stock options for proper motivation.

 

[Clever Name]

Maybe I'm missing something, but isn't Card Walker dead? The guy tweets from beyond the grave? Now that's impressive.

The recently retired Cardon Walker:

Cardon Walker
V.P. Creative Content at The Walt Disney Company

He was with the mouse for about 15 years but pulled the plug in April.

 

[Clever Name]

Iger and Rasulo and doing an old executive trick. Sell stock and then run to the executive compensation committee complaining that you don't have sufficient stock options for proper motivation.

Unlike Walt, what they're doing is legal.

 

[willtravel]

Unlike Walt, what they're doing is legal.

Just wondering, where does this information come from?

 

[ScoutN]

Ask Dark Shadows. Although that wasn't a Disney/family release.

Johnny D enjoys smaller movies still. Look up several of his interviews where his intentions were clearly to never be the blockbuster he is now.

 

[Clever Name]

Just wondering, where does this information come from?

History. Read about how Walt created WED Enterprises and why he was forced to sell his private company to the studio.

 

[the.dreamfinder]

History. Read about how Walt created WED Enterprises and why he was forced to sell his private company to the studio.

I think you meant RETLAW.

 

[willtravel]

I think you meant RETLAW.

What is RETLAW?

 

[flynnibus]

What is RETLAW?

A company setup by Walt to hold things of his creation.. seperate from Walt Disney Productions.. which started when he setup the group to work on Disneyland.. think the original WDI... the wiki article on it is pretty concise
http://en.wikipedia.org/wiki/Retlaw_Enterprises

 

[Clever Name]

I think you meant RETLAW.

No, I specifically meant WED. It was involved in the Clement Melacon lawsuit that alleged Walt was siphoning off profits from the studio to his own private company. We know that the allegations were true because the plaintiff got his way.

Of course, Walt was not one to learn from such mistakes and he engaged in similar activities with RETLAW until he was once again forced to come clean. Of course, it all started with Walt Disney Inc. which changed into WED and then evolved into RETLAW. So, take your pick or choose a time. None of Walt's private companies were above board.

 

[the.dreamfinder]

What is RETLAW?

http://en.m.wikipedia.org/wiki/Retlaw_Enterprises

Walt Disney Inc. was formed by Walt Disney in 1953 with the Disneyland designing engineering division. He also assigned the rights to his name and likeness to the company as well as ownership of two Disneyland attractions, the Disneyland Railroad and the Disneyland Monorail. Roy O. Disney objected to Walt's creation of the company as he considered it a diversion a larger portion of the Walt Disney Productions income to Walt's family. WDI charged a licensed fee to the Disney company for 5% to 10% of the income from all of Disney's merchandising deals.[1] With Roy's and potential stockholder objections, WDI was rename WED Enterprises based on his initials.[2]

Walt also licensed Zorro TV rights from Mitchell in February 1953.[3] WED Enterprises developed some scripts for the proposed Zorro TV series and shopped the series to the CBS and NBC TV networks. Both networks request to see a pliot show. With the construction of Disneyland ongoing, the Zorro show was but on hold.[4][5] Later that year, Walt Disney sold his Zorro TV show rights to the Walt Disney Production.[6]

In July 1953, Clement Melancon, a small shareholder of Walt Disney Productions stock, took Walt Disney and WED Enterprises, to court over the WED deal believing that Walt is improperly funneling profits from Walt Disney Productions.[7] The case is settled in Junuary 1955.[8]

Retlaw paid rent for the attractions' rights-of-way and employed the attraction administrators. Walt Disney through Retlaw Enterprises also owned the Viewliner and the horse-drawn streetcars on Main Street.[9]

Retlaw purchased 10% interest in 26 Disney 1960s live-action movies including Mary Poppins through Walt Disney's management contract with the Walt Disney Co. that allowed him to invest up to 15% in new projects. By 1990, these movies generate an annual income usually $600,000+ for Retlaw.[1]

 

[articos]

It got more than a little attention (removing traffic as opposed to anything new for TSI)

It got attention because it was a major change and there were some vocal people who really tried, but they were in no position to make it happen. I can tell you directly that it was never going to happen. Those who count at the top dismissed it immediately.

 

[ParentsOf4]

Walt was fairly contemptuous of "traditional" business relationships. Walt considered Walt Disney Productions his personal fiefdom, shareholders and board of directors be damned. As @Clever Name suggests, "siphoning off profits" to WED and RETLAW is probably the most concise way to describe what was happening.

In a nutshell, Walt felt he was doing all the work, taking all the risks, and providing the intellectual vision. The company would be nothing without him. Therefore, he deserved what he felt was his "fair share" of the money. Walt really did seem to think shareholders and investors should be quiet and be happy with whatever they got. He never seemed to be able to accept the fact that they too were taking risks nor did he seem to grasp his fiduciary responsibility to them as shareholders. I realize it's an oversimplification but the armchair psychologist in me wonders if it was related to his small-town upbringing which equated "earning" money with physical work along with a little brother inferiority complex. (Roy tried to step in several times but this seemed to cause Walt to only dig in his heals more.)

Frankly, many senior executives conduct similar business practices today but more carefully engage their legal teams before doing so. Perhaps Walt's biggest problem was his single-mindedness, which made it difficult for him to take advice from anyone else, including his legal counsel.

 

[the.dreamfinder]

Just because paying yourself 400 times your average employee's salary is legal doesn't make it ethical.

 

[Darth Sidious]

Like if Lone Ranger were to do poorly?

I will be honest I haven't studied the correlation of individual movies and their effect on DIS stock. In theory if the movie was projected to do well and then pulled a John Carter... that share price would drop a bit. The complexity of DIS and their conglomerate status makes me believe one movie would do very little to their share price. I would have to study it though... anyone who has studied it... I would love to hear their thoughts lol.

 

[flynnibus]

I realize it's an oversimplification but the armchair psychologist in me wonders if it was related to his small-town upbringing which equated "earning" money with physical work along with a little brother inferiority complex. (Roy tried to step in several times but this seemed to cause Walt to only dig in his heals more.)

I see it more just as an extension of his possessive nature. When the others wouldn't back his vision.. again.. he basically took his toys and went home and did it 'his way'. I think the licensing of his name was the biggest sticking point.. especially since he named the company himself in his own image.

 

[ParentsOf4]

Just because paying yourself 400 times your average employee's salary is legal doesn't make it ethical.

In business today, "legal" (and sometimes even things that are questionably legal) and "ethical" are treated as being interchangeable.

In Bob Iger's case, he makes about 2000 times the typical CM.

When you're dealing with vast sums of money and complex contracts, it's really important to have a good legal team backing you. I am sure everything Iger does is 100% legal.

 

[MattM]

I will be honest I haven't studied the correlation of individual movies and their effect on DIS stock. In theory if the movie was projected to do well and then pulled a John Carter... that share price would drop a bit. The complexity of DIS and their conglomerate status makes me believe one movie would do very little to their share price. I would have to study it though... anyone who has studied it... I would love to hear their thoughts lol.

Even Carter didnt move earnings too much. It effected studios, but overall I don't believe it made much of a difference. Especially not long term.