Roy v. Disney Board

[cellarhound]

OK...

As you know there is this motion by the Disney Company to have the Judge Dismiss the case... The question is whether the Board of Directors missled the shareholders (Roy and Stanley) over the selection process of CEO. My eye is on this case...

The motion to Dismiss had the argument that a fair search was made and Roy and Stan would not have submitted the suit if they agreed with the outcome.

My analysis is that this motion will likely back fire on the Disney Legal team, because it does not address the question... But rather conferms that a trial needs to be had in order to fully review the facts of the case.

This leads to asking YOUR OPINION...

Should this case be dismissed or not?

[Speedway]

This is just silly. They really are scraping the bottom of the barrel now. Now I have always supported Save Disney and I am a firm campaigner for putting Roy in a position of high power at the company, and it would make my year if Roy read out Walt's dedication on July 17 - but. This is not the place in a court for a case like this. Roy and Stanley need to get their act together and seek what they deserve in a more controlled manner.

[Speedway]

This is just silly. They really are scraping the bottom of the barrel now. Now I have always supported Save Disney and I am a firm campaigner for putting Roy in a position of high power at the company, and it would make my year if Roy read out Walt's dedication on July 17 - but. This is not the place in a court for a case like this. Roy and Stanley need to get their act together and seek what they deserve in a more controlled manner.

[Mouse princess]

I believe the court is a controlled manner, and I don't see any other option for Roy and Stan. I will agree that it is a bit of a grudge, but I am not sure that Disney's Board did a fair search. I am still uncertain of how well Iger will do once out form Eisner's shadow, and I would like to hope that he will succeed in revitalizing Disney

[Mr. Eggz]

Roy Disney is the largest shareholder of the Walt Disney Company. This is a shareholder lawsuit. He is suing the Board of the Walt Disney Company for not acting in the best interest of the Company's owners. There is nothing silly about that. George Mitchell, Chairman of the Board, said that the company would perform a exaustive search and then only interviewed one outside candidate. He lied to the owners of the Company. This behavior would be unnacceptible in any organization--public or private. The lawsuit is fair and appropriate. If anyone disagrees with it, I suggest they read the formal complaint which is posted on SaveDisney.com. It is detailed and well thought-out (unlike the CEO search).

[Speedway]

Hey, you might be right, but the author of the thread asked for my opinion and I gave it. My opinion is that it is silly.

[Morrigoon]

If you read DisneyWar, it becomes apparent that Eisner was scoping out Iger before Roy and Stan quit the board. It also becomes apparent that Eisner is a lying sack of...

[cellarhound]

Here is a bit of an update on the matter... The judge is going to hear the case, I am going to keep an eye on this like I said... However, the judge did not take any action on the complaint... So it sounds like he wants to hear evidence before he intervenes...

[laman6]

I am a current employee of Disney - and thought like many that Eisner's time at the company was over and he needed to move on... (there are probably many, many threads about him).

When Bob was appointed he held several coffees and mtgs with employees (here in LA, in Orlando, London, India). Already he has disbanded Strat Planning (which for us is a huge sign), he has greenlight investment at Disney Channel which has been suffering mktg cuts and he has allowed the teams to begin to make their own decisions... it does feel like a new day for many of us. Are things changing - from this seat in Burbank it appears so...

But with this new suit, it has re-opened a new anxious feeling for many people... Do I think this is spoiled grapes yes? Will this do more harm yes - at a time when we should be happy about ABC, ESPN, launch of DC India, Naria, 50th birthday - this lawsuit adds another cloud...

For many people Roy has become so focused on bringing Michael/Bob down that he forgets that there are many people with 401ks that get hit everytime focus has to turn from running our businesses to who is going to wni this fight... Please let us build again...

Were there other candidates?
Peter Chernin - Fox - interesting candidate - knows nothing about theme park and wanted to be appointed. The buyout of his contract would make Ovitz seem small
Meg Whitman - really interesting, knows nothing about theme parks, studio, or TV...
Jeff Bewkes / Terry Semel /Richard Parsons - smart guys who know very little about theme parks, consumer products or int'l

Every candidate is a potential - but all candidates wanted to be guaranteed that they did not have to interview - they wanted to ascend. Plus they are unknown quantities in the Disney organization - they had no connections with current staff and current plans...

If you would have brought any of those candidates - there is a very, very steep learning curve (we have been through Ovitz), there would be a departure of top execs as the new CEO brings in his people (more uncertainty for a company that has been through a 4k lay-off, Strat planning cuts and an ABC/feature animation downturn) and a whole new way to do business..

Give Bob the chance - if Roy wants to protest Bob's moves that is fair and valid but to make all of us start from scratch again is not fair to the employees..

I respect Roy for sticking to his guns, but there is a point that you move from attacking to trying to figure out how to help... perhaps Roy can use his large wealth to create a new animation company for the many animators that have been displaced by computers... Give Roy a chance to tell the disney stories that he thinks need to be told...

But please let TWDC begin to recover and build again - do not try to tear us down.

Best wishes

[drnilescrane]

Bob Iger can easily turn into Cynthia - Start big and go straight back down to the level to his predecessor... All the time working hard not to.

[laman6]

That is very possible - but I want to give bob the chance to screw-up as his own man.

A couple of us were talking last night about what would happen if the process for a CEO had to start again. In working in a couple different large media companies and dealing with execs - I really do wonder if anyone would want step into Disney. Roy and Stanley seem to be polluting the corporate waters with ongoing lawsuits and fights - there is a thin line between asserting shareholder voice and abusing it.

Peter Chernin, Steve Jobs, Meg Whitman - would basically be stepping into a system that if they piss off 2 men - the fights start up again...

I worry that Roy is destroying the one thing he loves.

[Mr. Eggz]

I worry that Roy is destroying the one thing he loves.

I also have a 401K with Disney, but I came to Disney because I believed it was someplace special. I could get a 401K anywhere, but I love Disney and I want Disney to be Disney which is why I put aside my personal interests and support Roy.

laman6 makes some good points in both his posts. Here's the other side...

It's great that Bob got rid of the Strat Planning Department. It's a good move and one Roy asked for years ago. But don't kid yourselves, he did not do it for the Theme Parks or Animation, he did it because ever since 1995 ABC and ESPN executives (including Iger) have been complaining that they want Strat panning out of their hair. Start Panning graduates are now running the key "Disney" divisions...Jay Rasulo runs the Parks, Don Goodman runs WDI, David Stainton runs Animation and the CFO, Tom Staggs is a former Strat Planner. If Bob was serious about getting rid of the Strat Planning culture he would remove these executives as well. If he does that, I'll change my tune. I don't think he will. I have met Bob, and I think he is a good guy; honestly he is. But he doesn't love Disney, nor Animation, nor Theme Parks. Supporting Bob Iger means supporting ABC & ESPN at the expense of the Parks and Animation. If you don't belive me, you will in a few years, but by then it will be too late.

I know that the media was all over Chernin, Semel and Whitman as the potential next CEO of Disney. And laman6 is right when he says that they would all face a steep learning curve, however they are not the only candidates. There are other potential CEOs in Steve Burke or Dick Cook..or teams (a la Eisner/Wells) that could include Judson Green, John Lasseter or Ed Catmul. All of these people know more about the "Disney" businesses than Iger. There are other options then what is presented in the main stream media.

As far as the problem of the CEO keeping two men happy. Well, one of those men is the largest shareholder of the Company, and yes I think a big part of the CEOs job is keeping the large shareholders happy. If the CEO can't do that, he can't do the job.

The Walt Disney Company Roy and I love has already been destroyed, there is almost nothing left. Roy is the only one with the guts to try to rebuild it, and I would do anything I can to help him. Screw the 401K.

[wem1985]

I also have a 401K with Disney, but I came to Disney because I believed it was someplace special. I could get a 401K anywhere, but I love Disney and I want Disney to be Disney which is why I put aside my personal interests and support Roy.

laman6 makes some good points in both his posts. Here's the other side...

It's great that Bob got rid of the Strat Planning Department. It's a good move and one Roy asked for years ago. But don't kid yourselves, he did not do it for the Theme Parks or Animation, he did it because ever since 1995 ABC and ESPN executives (including Iger) have been complaining that they want Strat panning out of their hair. Start Panning graduates are now running the key "Disney" divisions...Jay Rasulo runs the Parks, Don Goodman runs WDI, David Stainton runs Animation and the CFO, Tom Staggs is a former Strat Planner. If Bob was serious about getting rid of the Strat Planning culture he would remove these executives as well. If he does that, I'll change my tune. I don't think he will. I have met Bob, and I think he is a good guy; honestly he is. But he doesn't love Disney, nor Animation, nor Theme Parks. Supporting Bob Iger means supporting ABC & ESPN at the expense of the Parks and Animation. If you don't belive me, you will in a few years, but by then it will be too late.

I know that the media was all over Chernin, Semel and Whitman as the potential next CEO of Disney. And laman6 is right when he says that they would all face a steep learning curve, however they are not the only candidates. There are other potential CEOs in Steve Burke or Dick Cook..or teams (a la Eisner/Wells) that could include Judson Green, John Lasseter or Ed Catmul. All of these people know more about the "Disney" businesses than Iger. There are other options then what is presented in the main stream media.

As far as the problem of the CEO keeping two men happy. Well, one of those men is the largest shareholder of the Company, and yes I think a big part of the CEOs job is keeping the large shareholders happy. If the CEO can't do that, he can't do the job.

The Walt Disney Company Roy and I love has already been destroyed, there is almost nothing left. Roy is the only one with the guts to try to rebuild it, and I would do anything I can to help him. Screw the 401K.

AMEN!!!!!!!!!!!!!!!!!

[PragmaticIdealist]

Everyone seems to be forgetting that the lawsuit is in regards to the Board of Directors, first and foremost.

Walt Disney's Board is, without qualification, the worst of which I am aware. Just because management has changed does not mean that said management will be held accountable by this Board for The Company's future performance.

As long as the Board retains its current configuration, I assure you The Company will continue to have problems.

I would probably feel most comfortable with Dick Cook in the position of C.E.O., but whether or not Robert Iger remains there does not negate the fact that the Directors of Walt Disney need to leave. The incestuousness needs to come to an end, and the Member Owners of Walt Disney, both individual and institutional, need to hold their elected representatives to account for their lack of effectiveness.

Instead of Eisner's gardener and his dry-cleaner sitting on the Board, Walt Disney needs real subject-matter experts to ensure management is conducting the operation in a manner that is sound and that is consistent with the interests of the Member Owners.

[cellarhound]

First I want to say thanks to everyone who has posted here... No matter which side you are on... It is important that your views are heard...

I want to particularly say thank you for laman6's post...

But with this new suit, it has re-opened a new anxious feeling for many people... Do I think this is spoiled grapes yes? Will this do more harm yes - at a time when we should be happy about ABC, ESPN, launch of DC India, Naria, 50th birthday - this lawsuit adds another cloud...

I understand the anxiousnes and the thought that this may be spoild grapes.

I think what needs to be considered here is not just that Eisner was what Roy and Stan saw as the problem... There has been in the last 12 or so years a problem in corporate culture that has been left unchecked... It was mostly Eisner's addition. The thought that Disney doesn't need to mean excellence in family entertainment. That by lowering the standards, the fact that you can place the word Disney on a lable means you can charge a premium and get away with it unchallenged.

Were there other candidates?
Peter Chernin - Fox - interesting candidate - knows nothing about theme park and wanted to be appointed. The buyout of his contract would make Ovitz seem small
Meg Whitman - really interesting, knows nothing about theme parks, studio, or TV...
Jeff Bewkes / Terry Semel /Richard Parsons - smart guys who know very little about theme parks, consumer products or int'l

Only Meg Whitman was interviewed... She has a Disney background... However once news leaked she was the only outside candidate interviewed, she took her name off...

There where no other candidates, just people who expressed interest...

Every candidate is a potential - but all candidates wanted to be guaranteed that they did not have to interview - they wanted to ascend. Plus they are unknown quantities in the Disney organization - they had no connections with current staff and current plans...

Interviewed by WHOME? Unbelievably Eisner insisted on being present! That isn't the way a board finds a CEO...

If you would have brought any of those candidates - there is a very, very steep learning curve (we have been through Ovitz), there would be a departure of top execs as the new CEO brings in his people (more uncertainty for a company that has been through a 4k lay-off, Strat planning cuts and an ABC/feature animation downturn) and a whole new way to do business..

That is fear talking... That isn't necissarly true... The first thing a CEO does is listen to upper managment... Not fire them...

I respect Roy for sticking to his guns, but there is a point that you move from attacking to trying to figure out how to help... perhaps Roy can use his large wealth to create a new animation company for the many animators that have been displaced by computers... Give Roy a chance to tell the disney stories that he thinks need to be told...

But please let TWDC begin to recover and build again - do not try to tear us down.

I don't think this is just about Animation... But you must remember Disney was build on a Hand Drawn Mouse... It all started with a mouse, yes? Well it started with Hand Drawn Animation too...

The Walt Disney Company has a focus now that is so far removed away from Walt Disney that many of us feel it lost it's soul...