We’ve commented a lot over the last year about the state of Disney and the problems it has suffered under the watch of Michael Eisner of late. Eisner has done some good things for Disney in the past, but over the last couple of years Disney has been (to use a car metaphor) run into the ground with just about everything going wrong. The parks, the animation department, it’s relationship with Pixar, and so on.
It’s now been announced that Michael Eisner with step down from Disney when his contract expires in 2006. I think this is a good thing for both Disney and Eisner, and also a good period of time to ensure a thorough search for his replacement and a smooth transition period. This needed to happen, and probably should have happened 2 years ago… but at least the fight is coming to an end. The Associated Press gives us this:
Over the past year, Eisner’s leadership abilities have been questioned by former Disney board members Roy E. Disney and Stanley Gold, who have led a campaign against Disney through their Web site, SaveDisney.com. The former board members said Eisner was responsible for turning the company in the wrong direction.
Eisner also has lost confidence among investors, namely leaders of state pension funds in six states that have urged Disney to become more independent and be more aggressive in finding a successor for Eisner.
While the pension funds together represent less than 2 percent of Disney’s outstanding shares, they wield tremendous influence over corporate boards and led an effort that resulted in Disney shareholders withholding 45 percent of votes cast for the re-election of Eisner to the board at a March 3 annual shareholders meeting.
Click here to read the whole AP article.
