Ding dong the witch is gone: Eisner Retiring

[dannydp]

Okay so not till 2006, but still...

From Cnn:

Disney Co Chief Executive Michael Eisner will retire in September 2006, when his contract expires, the company said Friday.

"Until then I shall continue to exert every effort to help the company achieve our goals, to assist the Board in selecting the new Chief Executive Officer, and to make the transition expeditious, efficient, and smooth and easy," Eisner said in a letter to the Disney board.

Eisner closed his letter by echoing Disney's famous advertising campaign, first suggested by his wife Jane, saying: "I'm going to Disneyland!"

The decision signals the end of the 62-year-old Eisner's two-decade reign at the helm of the Burbank, Calif.-based company. Eisner has presided over a vast expansion of one of the world's best-known brands, whose businesses range from theme parks to films to the ABC television network.

It also comes six months after the Eisner, who became chief executive in 1984, narrowly survived an acrimonious battle led by dissident shareholders Stanley Gold and Roy Disney, a nephew of founder Walt Disney, to oust him from Disney leadership. Eisner was stripped of his role as Disney chairman.

Eisner said Disney's recent crises played no role in his decision to step down.

In an interview with the Wall Street Journal, he said the decision was "not asked for, not motivated by current circumstances at all," adding that with Disney on an upswing, "this was the time to give the board two years notice, so that there will be a comfortable period of succession."

In an interview published Sunday in the Los Angeles Times, Eisner said Disney President Robert Iger was his "preferred choice" to succeed him. Iger, a veteran broadcasting executive, told the newspaper he was interested in the job.

Last month, Disney said profit for its fiscal third quarter ended June 30 rose 20 percent to $604 million, or 29 cents per share, on revenue of $7.5 billion.

It is uncertain whether Disney's board would have offered Eisner a new contract if he wanted one, the newspaper said, citing unnamed people close to the situation.

Eisner's planned departure may make it more difficult for opponents to oust him, though Roy Disney's group has signaled it will likely campaign to elect a dissident slate of directors.

Disney (DIS: Research, Estimates) shares closed Thursday at $22.86. They began the year at $23.33.

[Freak]

http://quote.bloomberg.com/apps/news?pid=10000103&sid=a.gYfeHqIVX4&refer=us

Michael Eisner will step down as chief executive officer of Walt Disney Co. in 2006 after more than two decades in which he boosted sales almost 18-fold, added seven new theme parks and faced calls for his ouster.

Eisner, 62, said in a letter to the board of the second- largest media company he will retire as CEO after helping the company select a successor. The letter was received by e-mail from Disney's London-based spokeswoman Joyce Lorigan.

``It's good news, Disney without Eisner is much better than Disney with Eisner. But what is disappointing is that he's not going for another two years,'' said Antony Gifford, who helps manage about $2 billion of U.S. stocks at Henderson Global Investors in London. ``We believe that Disney has some attractive assets that are worth more than the share price suggests. But Eisner wasn't the man to unlock that value.''

*Edit* Damn, beat out by that dannydp again...didn't see the post until after I posted mine in The Break Room...oi.

[Polar33]

And I was beat out by the both of you. Although I could have sworn that I was on the site at 4:57 this morning...forgot to refresh I suppose.

The following is a letter from Michael Eisner to the members of the Walt Disney Company board of directors.

September 9, 2004

As we approach the end of the fiscal year and my 20th anniversary as CEO, I would like to share with you some personal observations about our Company. I have been honored and proud to be the Chief Executive Officer of this remarkable company for that length of time. Let me touch on what we have accomplished, what we have to do, and some of my personal plans.

Putting last things first, I plan to retire from my role as Chief Executive Officer of the Company upon the conclusion of the term of my employment agreement on September 30, 2006. Until then I shall continue to exert every effort to help the company achieve our goals, to assist the Board in selecting the new Chief Executive Officer, and to make the transition expeditious, efficient, and smooth and easy.

As to our current performance, we are and should be proud of how we have managed and strengthened the Company during difficult times. I won't repeat the detailed facts and figures which we have discussed or the comments made by me in the conference call to the financial community in August which I have already sent to you. I have been told by you, by friends, but mostly by outside observers, that it is quite extraordinary that we have been able to remain focused on our objectives and have managed to run the Company so well amidst the distractions that have taken huge chunks of time during the past several years.

Disney's management team has proved its devotion to the company and has taken advice once offered by Babe Ruth. In the midst of a World Series, when asked how he keeps his cool when the fans go crazy, hollering and hooting every time he comes to bat, he explained: "I keep my eye on the ball". Our executive team has not been diverted from the task of creating intellectual product, efficiently running the Company, and preparing for the future.

I know it has been a very challenging time for the Board members during this period, and I am most grateful for all of the time and effort, consideration and support, and concern for the Company that all of you have demonstrated.

Most of you were not part of the Company as we grew and prospered, both domestically and internationally since Frank Wells and I came aboard in September 1984. Statistics only tell part of the story, but let me throw out a few: Total number of employees - from 28,000 to 117,000; Revenues from $1.7 Billion to a projection of roughly $30 Billion for this fiscal year; Enterprise Value from $2.8 Billion to $57 Billion. This, of course, is an outgrowth of the seven new parks, 28,458 new hotel rooms, 70 new cable channels around the world, and 800 new movies we created.

Our major acquisition, CapCities/ABC, in January 1996 (whose value has gone from a net cost of $16 Billion to an estimated analyst value of $39.1 Billion-$53.3 Billion), was most important to the continued growth of our Company, in an era of consolidation of media, of production and distribution, and vast technological change.

Along the way, I have been well rewarded for my efforts and the Company's performance. I have reinvested a substantial portion of those proceeds into Disney stock (14 million shares). That and my strong feelings for the Company are the incentive to make the Company even more successful and to be sure this success continues beyond my tenure as CEO.

We are different from companies not in the entertainment field. We are a creative company, and as a result, we are so much more. We must consider, develop, discard and reconsider, literally masses of ideas each day, based on few inexact criteria, using experience, talent, judgment, instinct, and hope as our guides along with our education and experience and sense of fiscal responsibility. This is a complicated and risky process, unlike the manufacture and sale of a single or related line of product. We are judged by definitive standards. But it is the creative that pushes to new heights that which can be measured, that which has lasting value to our culture and company.

I believe we have learned who we are, and who we are not; what we do best, and what we don't. Of course, that does not mean we stagnate into a museum or play safe. It just means we play smart. There are so many opportunities available to utilize our core assets, our brands and capabilities around the world. We must be completely informed and involved in the future, in new technologies that can help us maintain our leadership in creating and distributing and protecting our content. We must be prudent entrepreneurs and pragmatic capitalists. We must not forget that we are always singing and dancing 'for our supper'.

We are determined to continue to improve our performance through our focused attention on our creative initiatives, from the Studio to the Media Networks, from our three-dimension worlds to our cyber future, from one end of the globe to the other. And I predict the combination of 'the definitive' and the creative at its core will result in a significant boost sooner rather than later. Having just returned from an Albert Einstein conference at the Aspen Institute, I am struck by his commitment to creativity. "Imagination is more important than knowledge."

I expect the next two years will be critical to the future of our Company and that we must take advantage of the positive projections we anticipate. The momentum has changed. But in a sense, it is harder to manage a Company in success than in failure. We now have to continue the teamwork and selflessness that marked the last couple of years. We have to maintain that spirit as the spotlight will find us more and more in the winners' circle.

It has been a fantastic Disney ride for the past twenty years. Ups and downs to be sure, but filled with great satisfaction in building this wonderful creator of classic American culture into one of the premiere entertainment oriented companies in the world. My affection for Disney will never retire. And, like our campaign, suggested by Jane in 1986 that seems to resonate for so many, I can only conclude by telling you what I am doing next. "I'm going to Disneyland!"

Sincerely,

Michael Eisner

[Polar33]

I can only conclude by telling you what I am doing next. "I'm going to Disneyland!"
I could spend hours picking apart all the BS in his letter, but I'll spare everyone on that as I'm sure your opinions will be the same as mine. All I have to say on this last line though is "Is that supposed to be some sort of threat?" Sounds like one too me. Please Michael, if there's anything that you should have picked up on from your last trip to Disneyland is that you don't belong there, period.

[GMC]

if i see him at indy i'll accidentally hit an e-stop, and say it not working agian, and then forget to evac his vehicle, and if it's the train, i dunno, i'll fill his car with all the people, and leave the rest of them empty.... i love doing that :twisted: !

[DLRFantasmic!Dan]

FINALLY!! He is gone!!! Thank goodness!!! v Maybe we will get someone good and decent, who doesn't care that much about profit, but about family values. Any maybe, we can get back with Pixar!!

[Main Streeter]

FINALLY!! He is gone!!! Thank goodness!!! v Maybe we will get someone good and decent, who doesn't care that much about profit, but about family values.
Not gone yet!! DAMN! Two yrs. left before Eisner goes puff. This is absolutely asinine :evil: Runs his contract & bonuses well into the home stretch & proudly out Club 33 door. No park changes will or can be made until this lame duck leaves. Can't believe Eisner's arrogance, yet he is within contract bounds. BLAH! Last time he was at DLR, I swept next to him, area was not spotless & leads panicked. Wanted to sweep dirt & popcorn on his polished Wingtips. Great effort holding back my evil wish. :wink:

Last edited by Polar33: fixed error in BBCode.

[GMC]

like i said, i'd treat him like any other guest, and still follow the fourkeys/service model while doing it! I wonder if he ever browses the sites, i mean he's got to know people hate him, how could he not!?

[dannydp]

*Edit* Damn, beat out by that dannydp again ... didn't see the post until after I posted mine in The Break Room ... oi.
We try :)

[dannydp]

Pair urges Disney CEO search
By Associated Press | September 14, 2004

LOS ANGELES -- The leaders of the effort to oust Michael Eisner as chief executive of Walt Disney Co. have called on the company's board to reject Eisner's offer to retire in 2006 and his pick of president Robert Iger as his successor.

Roy E. Disney and Stanley Gold said yesterday they will propose an alternate slate of directors if Disney's board does not launch an immediate search for a new chief executive and say that Eisner will step down from the board at the conclusion of the search.

The two former board members said a new chief executive should be in place before Disney's next shareholder meeting in early 2005.

Eisner said Friday that he intends to retire as chief executive when his contract expires in September 2006.

He did not say whether he would seek to remain on Disney's board.

Yesterday, Roy Disney and Gold called Eisner's pledge ''mere window dressing" and said ''there is no acceptable solution that includes Mr. Eisner's continued leadership at Disney for the next two years -- let alone any longer than that."

A Disney company spokesman did not immediately return a call seeking comment.

Disney shares rose 16 cents to $23.32 on the New York Stock Exchange.

[coldfire409]

From SaveDisney.com

An Open Letter to the Non-Employee Members
of the Board of Directors of
The Walt Disney Company

Roy E. Disney
Stanley P. Gold

4444 Lakeside Drive
Burbank, CA 91505

September 13, 2004

Mr. John Bryson
Mr. John Chen
Ms. Judith Estrin
Mr. Alwyn Lewis
Ms. Monica Lozano
Mr. Robert Matschullat
Mr. George Mitchell
Father Leo O'Donovan
Mr. Gary Wilson

Ladies and Gentlemen:

For each of you the upcoming September 20 Board meeting will be a moment of truth - one in which you will have the opportunity to exercise your fiduciary duties and demonstrate your commitment to serving the best interests of The Walt Disney Company and its stockholders.

Michael Eisner's announcement that he intends to remain CEO for the next two years forces you to make a critical decision. Will you choose to let the Company drift for two more years - allowing the pall Mr. Eisner has cast to continue to drive the most talented and creative people away from Disney, erode the morale of current employees, and prevent the Company from attracting the strong, dynamic, and creative leader it needs? Or will you reject Mr. Eisner's brazen attempt to usurp your responsibilities as directors by stage-managing the appointment of his anointed successor and instead tangibly show your commitment to best corporate practices by immediately initiating an expeditious and broad search for a world-class CEO?

We understand and appreciate the difficult position in which Mr. Eisner has once again placed you. As those instrumental in bringing both Michael Eisner and Frank Wells to Disney in 1984, we know how close some of you are to him personally. But there is no acceptable solution that includes Mr. Eisner's continued leadership at Disney for the next two years - let alone any longer than that. Regardless of whether he serves in a diminished capacity during the next two years as a "lame duck" or continues to manage the Company, the changes necessary to restore Disney's luster will simply not be made.

As former Disney directors, major stockholders, and individuals with a longtime passion and commitment to the Company, we believe it is intolerable for Michael Eisner to continue to hold the Company hostage for two more years - and perhaps longer. As recently pointed out by the Los Angeles Times, "Management experts note that most retiring CEO's take three to nine months to tie up loose ends and train a successor before hitting the exits. Longer transitions, they say, can be chaotic and disorienting." In the case of Disney, where management turmoil has enveloped the Company for years, dragging out succession planning for another two years would be catastrophic. Disney cannot compete effectively in the constantly changing and evolving entertainment and media industry if it is frozen in place. Stockholders will continue to see the value of their investment languish, just as the price of Disney's shares has over the past seven years.

While Mr. Eisner's announcement at first blush looks like a major change, it is in truth mere window dressing. What he has really proposed is a scheme to arrogate the authority of the Board and maintain the status quo at the Company's expense.

Press accounts suggest that Mr. Eisner intends to ask you to install him as chairman after he relinquishes the CEO title. In other words, his "succession plan" is for a company led by Michael Eisner and his obedient lieutenant, Bob Iger, to be handed over to . . . Michael Eisner and Bob Iger. Do you really think that this result will be tolerated by stockholders or will satisfy anyone that you have carried out your responsibilities? Any arrangement that permits Mr. Eisner to remain as Chairman after relinquishing his position as CEO is contrary to best governance practices. Disney stockholders deserve exemplary governance from their directors.

In effect, Mr. Eisner has challenged each of you to exercise the power delegated to you by stockholders. His preemptive announcement of his favored candidate to serve as CEO once again demonstrates his disregard for the proper responsibilities of the Board to make such vital decisions. In his view, the Board's role is merely to rubber stamp his unilateral decisions, to provide cover for his real agenda.

Your course is clear. We ask you to immediately engage an independent executive recruiting firm to conduct a worldwide search for a strong visionary leader capable of guiding this Company as it faces the challenges ahead. Because we believe that no one with the skill, experience, dynamism and creativity needed to lead Disney will take the job if Mr. Eisner remains as CEO or chairman, we ask you to concurrently announce that Michael Eisner will retire as CEO and as a director at the conclusion of that search. If you make it clear that Mr. Eisner is leaving the Company and the Board, we have no doubt that a number of excellent candidates will beat a path to your door. In that case, choosing a successor could be accomplished prior to the 2005 Annual Meeting of Disney stockholders. This is more than five months away, surely enough time for a proactive Board to get the job done.

The actions this Board needs to take are straightforward. Once again, Mr. Eisner has placed his personal ambitions ahead of the interests of the Disney stockholders; in so doing he has hijacked your duties as directors. The only question is whether you have the courage to confront Mr. Eisner. More than six months have passed since the stockholders cast their resounding vote of no confidence in Mr. Eisner and this Board. During those six months, you, the non-employee directors, have done little or nothing to restore that confidence. For the good of the Company, it is time for this Board to demonstrate its independence. Bringing in a new CEO - and doing so quickly - is the first step in restoring the vibrancy of this Company. It will allow the Company to strengthen and broaden its management team and rebuild the morale of Cast Members. It will allow the Company to attract top talent and begin to repair the damaged relationships with Disney's creative partners.

We intend to make it clear - to our fellow stockholders, to Disney Cast Members and to other Disney constituencies - that we will strongly support Directors who want to move Disney forward by requiring Mr. Eisner to leave as CEO and as a Director no later than the 2005 Annual Meeting and who are committed to the Board conducting an immediate search for a new CEO. By the same token, we will oppose with unrelenting vigor Directors who continue to support drift, delay, and decay. Should the Board not take the actions proposed above - immediately engaging an independent executive recruiting firm to conduct a worldwide search for a talented CEO and concurrently announcing that Michael Eisner will leave the Company at the conclusion of that search - we intend to take our case directly to our fellow stockholders and propose an alternate slate of directors committed to moving the Company forward aggressively.

You have the authority and the responsibility to manage Mr. Eisner's succession. In so doing, we urge you to put first and foremost the interest of the Company stockholders, Cast Members, and the millions of people who love Disney. The spotlight is now on each of you. Disney stockholders and Cast Members deserve to know where you stand after this important Board meeting. We await your response.

Yours very truly,

Roy E. Disney Stanley P. Gold

Roy's cards are out on the table. Perhaps Eisner will be gone sooner than we think. Right now Eisner has made a big mistake. All collective bargining agreements have either expired, or will expire at the end of this month. I sence that something big is about to happen. Bigger than all the squandered talent Disney has let go.