A very interesting read....
Eisner Foes in Full Throat
By George Mannes
TheStreet.com Senior Writer
3/3/2004 4:49 PM EST
Click here for more stories by George Mannes
Updated from 3:42 p.m.
The calls for Michael Eisner's scalp got much louder Wednesday.
A huge number of Disney (DIS:NYSE - news - research) shareholders sided with the dissidents seeking to take down the embattled longtime CEO, and an influential institution took issue with his leadership as well.
The events deepened the turmoil surrounding the media conglomerate, but the Burbank, Calif., company signaled its intention to slug it out with its foes.
The company said 43% of votes cast in its annual director election withheld support for Eisner. Dissident ex-director Stanley Gold, who with family member Roy Disney is battling to force Eisner's removal, had predicted a strong showing in favor of shaking up Disney management. The California Public Employees' Retirement System, a big shareholder, seconded Gold's call for Eisner's departure by year-end, saying giving up the chairman's job -- a prospect bandied about in media reports -- isn't enough.
"This discontent is too wide and way too deep in the marketplace, and it has led us to believe that Eisner should go and the Board should get quickly to work on planning for an orderly transition," said Calpers exec Sean Harrigan. "While Mr. Eisner has made some noteworthy contributions in the past, the long term performance of the company, plus the resounding lack of confidence expressed by shareholders bring us to the conclusion that The Disney Company needs to resolve this situation and move on."
Would-be suitor Comcast (CMCSA:Nasdaq - news - research) stood by last month's takeover offer for Disney, indicating it won't raise its bid but saying it believes the vote shows shareholders want change.
"Today's unprecedented withhold vote by Disney's shareholders sends a powerful message that Disney's Board and management need to focus more on shareholder interests," Comcast said. "Consistent with this focus, Disney's independent directors should immediately meet with Comcast so we can directly present our full and generous proposal and the benefits of the merger."
Meanwhile, Disney continued to stand firm. As it has ever since Comcast launched its $48 billion all-stock bid in the middle of last month, the company highlighted what it calls its improving performance and its bright future as an independent entity.
At a news conference following the annual shareholder meeting here, financial chief Bob Staggs said to much applause that he believes Disney can achieve Comcast's postmerger financial targets "on a standalone basis." Last month Comcast said it hoped to achieve cash-flow benefits of $1 billion over three years after the merger.
Eisner Foes in Full Throat
By George Mannes
TheStreet.com Senior Writer
3/3/2004 4:49 PM EST
Click here for more stories by George Mannes
Updated from 3:42 p.m.
The calls for Michael Eisner's scalp got much louder Wednesday.
A huge number of Disney (DIS:NYSE - news - research) shareholders sided with the dissidents seeking to take down the embattled longtime CEO, and an influential institution took issue with his leadership as well.
The events deepened the turmoil surrounding the media conglomerate, but the Burbank, Calif., company signaled its intention to slug it out with its foes.
The company said 43% of votes cast in its annual director election withheld support for Eisner. Dissident ex-director Stanley Gold, who with family member Roy Disney is battling to force Eisner's removal, had predicted a strong showing in favor of shaking up Disney management. The California Public Employees' Retirement System, a big shareholder, seconded Gold's call for Eisner's departure by year-end, saying giving up the chairman's job -- a prospect bandied about in media reports -- isn't enough.
"This discontent is too wide and way too deep in the marketplace, and it has led us to believe that Eisner should go and the Board should get quickly to work on planning for an orderly transition," said Calpers exec Sean Harrigan. "While Mr. Eisner has made some noteworthy contributions in the past, the long term performance of the company, plus the resounding lack of confidence expressed by shareholders bring us to the conclusion that The Disney Company needs to resolve this situation and move on."
Would-be suitor Comcast (CMCSA:Nasdaq - news - research) stood by last month's takeover offer for Disney, indicating it won't raise its bid but saying it believes the vote shows shareholders want change.
"Today's unprecedented withhold vote by Disney's shareholders sends a powerful message that Disney's Board and management need to focus more on shareholder interests," Comcast said. "Consistent with this focus, Disney's independent directors should immediately meet with Comcast so we can directly present our full and generous proposal and the benefits of the merger."
Meanwhile, Disney continued to stand firm. As it has ever since Comcast launched its $48 billion all-stock bid in the middle of last month, the company highlighted what it calls its improving performance and its bright future as an independent entity.
At a news conference following the annual shareholder meeting here, financial chief Bob Staggs said to much applause that he believes Disney can achieve Comcast's postmerger financial targets "on a standalone basis." Last month Comcast said it hoped to achieve cash-flow benefits of $1 billion over three years after the merger.