Eisner Vetoed...

[Fozzie Bear]

http://www.washingtonpost.com/wp-dyn/articles/A6430-2004Feb25.html

CalPERS to Withhold Votes for Eisner's Re-Election

By GARY GENTILE
AP Business Writer
Wednesday, February 25, 2004; 6:04 PM

LOS ANGELES-- Embattled Walt Disney Co. CEO Michael Eisner lost the support Wednesday of California's powerful state retirement fund, a big investor that called the company's performance "dismal."

The California Public Employees' Retirement System said it will withhold its votes for Eisner's re-election, citing Disney's poor performance over the past five years and saying it lacked confidence in the company's "long-term strategic vision."

"We have lost complete confidence in Mr. Eisner's strategic vision and leadership in creating shareholder value in the company," Sean Harrigan, president of the CalPERS board of administration said.

CalPERS is the 29th single largest shareholder of Disney, with 9.9 million shares.

Its announcement came hours after Glass Lewis & Co., a San Francisco-based research firm that advises institutional shareholders, recommended that holders of Disney stock withhold their votes for Eisner.

The recommendation lends strength to the efforts of two ex-board members, Stanley Gold and Roy E. Disney, to oust Eisner, who has served as chairman and chief executive since 1984.

Disney's annual meeting is scheduled for March 3 in Philadelphia.

**********************
Basically, the news just reported that the Stockholders are going to vote against his re-employment.

 

[Whatever]

good news!

 

[DisneyNut]

Good news and bad news really. On one hand, it will be great to have Eisner out of the company. On the other hand, they don't need anything that will make them more vulnerable to a takeover either. The next few months are going to bring a lot of changes to Disney no matter what happens.

 

[Fozzie Bear]

Maybe there was a promise or prior knowledge of Eisner's ousting that allowed the Henson 5 to determine it was okay to sell the Muppets to Disney.

Heh, who knows...maybe the Henson 5 have a plan to partner with someone to a take over of Dizzy.

It'd be funny for the Frog to become the Big Cheese.

 

[dmx10101]

Yea, I read this in my paper this morning. I was gonna post it here. Here's another version of the story-

Second proxy firm says shareholders should vote against Eisner

By GARY GENTILE
Associated Press

LOS ANGELES -- A second influential proxy solicitation firm has recommended that shareholders of The Walt Disney Co. withhold their votes for chairman and chief executive Michael Eisner.

Glass Lewis & Co., a San Francisco-based research firm that advises institutional shareholders, said that while the Disney board has improved its conduct over the past few years, Eisner and two other board members should be held accountable for past transgressions.

''The Disney board has been notoriously insular, famously gullible and blindly loyal to Mr. Eisner,'' Glass Lewis said in a research report released Wednesday. ''In our view, Disney's board has come a long way, but not far enough.

''More importantly, shareholder interests are best served by a board that is on notice that shareholders are watching and have not forgotten past indiscretions.''

Disney did not immediately return a call seeking comment.

The proxy firm Institutional Shareholder Services recommended two weeks ago that shareholders withhold their votes from Eisner.

''For 20 years Disney's revolving door for board members and management has had one constant -- Eisner,'' the ISS report said. ''The withhold vote recommendation on Mr. Eisner is meant as a signal to try a little harder.''

Two ex-Disney board members, Stanley Gold and Roy Disney, have mounted an aggressive campaign to persuade shareholders to withhold votes from Eisner and three other board members at Disney's annual meeting March 3 in Philadelphia.

The two say that Eisner has mismanaged the company since 1994 and acted to squelch board criticism and that board members have lacked independence. Eisner has been chief executive since 1984.

Cable television giant Comcast Corp. made a takeover bid for Disney on Feb. 11. The Disney board unanimously rejected the offer as too low and expressed support for Disney's current management.

The Glass Lewis report made reference to a lawsuit brought on behalf of shareholders against the Disney board stemming from the departure of Michael Ovitz as Disney president in 1996 after serving less than two years.

The lawsuit challenges the severance package Disney paid to Ovitz and alleges Eisner put his friendship with Ovitz over his fiduciary responsibility to the company.

Ovitz received a cash payout of $38 million and shares valued at around $100 million.

The report also mentions a Securities and Exchange Commission investigation into Disney's failure to disclose information on a timely basis about possible conflicts of interest of several directors. The information was eventually disclosed and Disney recently said it is negotiating a settlement with the SEC.

 

[Luke]

Maybe there was a promise or prior knowledge of Eisner's ousting that allowed the Henson 5 to determine it was okay to sell the Muppets to Disney.

Actually Jim really got on with Eisner, and despite some rocky moments in the 90's so do the Henson kids. It's Katzenburg who Jim didn't like so much.

 

[Fozzie Bear]

Ovitz received a cash payout of $38 million and shares valued at around $100 million.

For that alone I would have had Eisner booted...if I had that power.

 

[Luke]

Nah - it'd be MUCH more fun to see him THWACKED with the Rubber Chicken! I was so waiting for you to call in Kev to that Larry King show and say "Mr Eisner, Kevin Williams here and I have a rubber chicken beside me with your name on it!"

 

[Fozzie Bear]

Ha Haaa!!

Had I been home that night, you betcha!! It'd be a better call than, "I have a script I'd like you to read, where do I send it??"

You know, when the legs of the rubber chicken wrap around the victim of a thwacking and I pull back real quick, it leaves marks...at least it does on the couch.

(I've been practicing.)