WSJ UPDATE:Disney Board Expected To Name Iger As CEO-Source

brisem

brisem

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WSJ UPDATE:Disney Board Expected To Name Iger As CEO-Source

(Updates a story sent at 2:07 a.m. by adding second reporter to byline)

By Merissa Marr and Mylene Mangalinden

Of THE WALL STREET JOURNAL

NEW YORK -(Dow Jones)- Walt Disney Co.'s (DIS) board is soon expected to name President Robert Iger as its new chief executive, according to a person familiar with the situation. Mr. Iger would succeed longtime chief Michael Eisner, who has announced plans to step down.

Disney's board met late Saturday to discuss the CEO search. The leading external contender, EBay Inc. (EBAY) Chief Executive Meg Whitman, withdrew her candidacy Friday.

(This story and related background material will be available on The Wall Street Journal Web site, WSJ.com.)

Having been stripped of his chairman title in a shareholder revolt last year, Eisner announced plans to depart as CEO when his contract expires in September 2006. Disney's board had pledged to choose a new CEO by this June, and hired a search firm to look for external candidates.

Eisner put forward Iger, his number two, as his preferred internal candidate some months ago. Iger has been Disney's president since 2000, and was a top executive at Capital Cities/ABC Inc. before it was acquired by Disney in the mid-1990s.

Together with Eisner, he saw Disney through a long earnings slump in the late 1990s and early 2000s. But he gained momentum as a CEO candidate in the past year as Disney's financial performance picked up, especially in the television business with hits like "Desperate Housewives."

The promotion of Iger, 54, could be announced as soon as Sunday.

According to people close to Disney, the board was also due to consider whether to usher Eisner out of the company soon after a new CEO is selected. That would provide some cover for the board with Iger's appointment; critics have said that he would not have true control of the company if Eisner remained in the picture in any way.

Disney's board had hired a search firm to court external candidates for the CEO position as well. But it difficult to lure outsiders, given Eisner's backing for Iger. A number of high-profile CEOs and top media executives were approached but declined to be interviewed, people familiar with the situation said.

However, Whitman, one of the most prominent CEOs in the technology industry, met with the Disney board this week, after being heavily courted by board members and an executive recruiter, according to a person familiar with the matter.

Whitman was told that she was the sole external candidate, according to the person familiar with the situation. Whitman had worked at Disney and loved the brand, and was eventually persuaded by the Disney board to go through the selection process.

Ultimately, Whitman decided to remain at eBay, in part because Disney was taking longer than she had been promised in choosing a CEO, the person said.

One major advantage Iger had is the fact that he knows Disney better than any other candidate. Iger spent 20 years working his way up the ranks at ABC and has worked closely with Eisner for many years.

Married to television journalist Willow Bay, Iger has four children.

-By Merissa Marr and Mylene Mangalinden of the Wall Street Journal, merissa.marr@wsj.com, 323-658-3818; mylene.mangalinden@wsj.com, 415-765-6114

Dow Jones Newswires 03-13-050354ET

Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.


2005-03-13 03:54 -05
 
brisem

brisem

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Updated: 05:29 PM EST
EBay's Whitman Reportedly Withdraws From Disney CEO Hunt
By Mylene Mangalindan and Merissa Marr, Staff Reporters of The Wall Street Journal, Dow Jones

SAN FRANCISCO -- EBay Inc. (EBAY) Chief Executive Meg Whitman has taken herself out of the running for Walt Disney Co.'s (DIS) top job, according to a person familiar with the situation.

She met with the Disney board this week after being heavily courted as a candidate to succeed Michael Eisner as Disney's CEO, the person said, but Ms. Whitman decided to remain at eBay, in part because Disney was taking longer than she had been promised in choosing a CEO.

Ms. Whitman telephoned a Disney board member Friday night to withdraw her candidacy, the person said.

Her withdrawal may put Disney President Robert Iger, the lone internal candidate, at the front of the line in the Disney search. He has been seen by some as a frontrunner for some time. Ms. Whitman was told she was the only external candidate, according to one person familiar with the matter.

Still, the Disney board may yet have other external candidates it is considering. People familiar with the matter said the situation is fluid, even in regard to Whitman, and may yet change.

A Disney spokeswoman didn't immediately provide comment. An eBay spokesman said Ms. Whitman wasn't available for comment.

Mr. Eisner last fall announced plans to depart as Disney's CEO when his contract expires in September 2006. The longtime Disney chief resigned his chairman's title following last year's annual meeting after a massive show of shareholder unrest.

Disney's board pledged to hire a new CEO by June and hired search firm Heidrick & Struggles International Inc. to assist the process. After a long period of due diligence, the process moved into high gear recently as the Disney board began contacting possible outside candidates. The search may be nearing a conclusion.

Disney board members and an executive recruiter approached Ms. Whitman, one of the most-prominent CEOs in the technology industry, over the last several weeks, said the person familiar with the matter. She initially had no interest in leaving her current position, the person said.

But Ms. Whitman had worked at Disney and loves the brand, so she was eventually persuaded by the Disney board to go through the selection process, said the person familiar with the situation.

Now that Ms. Whitman has taken herself out of the running, the person said, she has decided she would decline to take the Disney job even if the board offered it to her.

Ms. Whitman's name has increasingly come up as a potential candidate for high- profile CEO jobs. Though eBay's growth has recently started to slow, she has been credited with defying the dot-com bust by transforming the San Jose, Calif., company from a funky little Internet auction Web site into a vast global marketplace that dominates its category.

Losing Ms. Whitman may be judged a major missed opportunity for Disney and its board. Some directors were thought eager to hit a "home run" by choosing a proven CEO, and she would have fit that bill.

If Mr. Iger is picked after Ms. Whitman's withdrawal, Disney is likely to come under attack from critics such as dissident ex-directors Stanley Gold and Roy E. Disney, who complained the process was flawed all along and Mr. Iger was a shoo- in. Disney's board has long been under attack from critics who said it was too beholden to Mr. Eisner during his 20-year run at the company.

After announcing last year he would retire when his contract expires in September 2006, Mr. Eisner put Mr. Iger forward as his preferred internal candidate some months ago. But Disney also hired Heidrick & Struggles to explore external candidates.

According to people close to Disney, the board is also considering whether to usher Mr. Eisner out of the company soon after a new CEO is picked, regardless of who it is. That would provide some cover for the board if it chooses Mr. Iger, as critics have said he wouldn't have true control of the company if Mr. Eisner remained in the picture in any way.

That perception was exacerbated, according to people close to the company, by Mr. Eisner's periodic musings to associates that he might like to serve as chairman again after departing as CEO.

-By Mylene Mangalindan and Merissa Marr; The Wall Street Journal; mylene.mangalindan@wsj.com; 415-765-6114; merissa.marr@wsj.com; 323-658-3818

(Joann S. Lublin contributed to this report)

Dow Jones Newswires 03-12-051706ET

Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved
 
brisem

brisem

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Original Poster
Disney Board Meets, as EBay CEO Withdraws Name
By Mylene Mangalinden and Marissa Marr, Staff Reporters of The Wall Street Journal, Dow Jones

(Adds Saturday board meeting, other details)

NEW YORK -- Walt Disney Co.'s (DIS) board met late Saturday to consider its options for succeeding Chief Executive Michael Eisner, with two apparent avenues remaining -- give the job to President Robert Iger or press on to find another external candidate in the wake of eBay Inc. (EBAY) Chief Executive Meg Whitman's decision to remove herself from the race.

People close to the matter said the board had been scheduled to meet Saturday night even before Ms. Whitman informed the company late Friday she has taken herself out of the running. Disney has been searching for a new CEO since Mr. Eisner announced in September he would step down when his contract expires in 2006.

Ms. Whitman's withdrawal may turn out to be a crucial moment in the succession race. It appears to leave Mr. Iger, the lone internal candidate for the position, at the front of the line. One person familiar with the situation said Ms. Whitman had been told she was the only remaining external candidate. But the Disney board may feel it needs to show that it has another option besides Mr. Iger, perhaps News Corp. (NWS) President Peter Chernin.

Ms. Whitman met with the Disney board this week after being heavily courted as a candidate to succeed Mr. Eisner as CEO, according to a person familiar with the matter. But she decided to remain at eBay, in part because Disney was taking longer than she had been promised in choosing a CEO, the person said.

A Disney spokeswoman had no comment. An eBay spokesman said Ms. Whitman wasn't available for comment.

Mr. Eisner announced his departure plans six months after he gave up his chairman's title following a massive show of shareholder unrest at Disney's 2004 annual meeting. Disney's board pledged to hire a new CEO by June and hired search firm Heidrick & Struggles International Inc. to assist the process. After a long period of due diligence, the process moved into high gear recently as the Disney board began contacting possible outside candidates. Mr. Eisner put Mr. Iger forward as his preferred internal candidate some months ago. The search may now be nearing a conclusion.

Disney board members and an executive recruiter approached Ms. Whitman, one of the most prominent CEOs in the technology industry, over the last several weeks, said the person familiar with the matter. She initially had no interest in leaving her current position, the person said.

But Ms. Whitman had worked at Disney and loves the brand, so she was eventually persuaded by the Disney board to go through the selection process, the person said.

Now that Ms. Whitman has taken herself out of the running, the person said, she has decided she would decline to take the Disney job even if the board offered it to her.

Ms. Whitman's name has increasingly come up as a potential candidate for high- profile CEO jobs. Though eBay's growth has recently started to slow, Ms. Whitman has been credited with defying the dot-com bust by transforming the San Jose, Calif., company from a funky little Internet auction Web site into a vast global marketplace that dominates its category.

Losing Ms. Whitman may be judged a major missed opportunity for Disney and its board. Some directors were thought eager to hit a "home run" by choosing a proven CEO, and she would have fit that bill.

Mr. Iger can argue he knows the company better than any other candidate. He has been Disney's president since 2000 and was a top executive at Capital Cities/ABC Inc. before it was acquired by Disney in the mid-1990s.

He shared the blame when Disney suffered through a long earnings slump in the late 1990s and early 2000s, but has gained momentum as a CEO candidate as Disney's financial performance has picked up in the last year. Mr. Iger has also garnered praise from some on Wall Street who think he has proven himself ready for the job.

But if Mr. Iger is picked, Disney could come under attack from critics such as dissident ex-directors Stanley Gold and Roy E. Disney, who complained the process was flawed all along and Mr. Iger was a shoo-in. Disney's board has long been under attack from critics who said it was too beholden to Mr. Eisner during his 20-year run at the company.

According to people close to Disney, the board is also considering whether to usher Mr. Eisner out of the company soon after a new CEO is picked, regardless of who it is. That would provide some cover for the board if it chooses Mr. Iger. Critics have said he wouldn't have true control of the company if Mr. Eisner remained in the picture in any way.

That perception was exacerbated, according to people close to the company, by Mr. Eisner's periodic musings to associates that he might like to serve as chairman again after departing as CEO.

-By Mylene Mangalinden and Merissa Marr; The Wall Street Journal; mylene.mangalinden@wsj.com; 415-765-6114; merissa.marr@wsj.com; 323-658-3818

Dow Jones Newswires 03-13-050024ET
 

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