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.


http://finance.myway.com/jsp/nw/nwdt_ge.jsp?news_id=dji-00028120050313&feed=dji&date=20050313

Roy is going to be pissed.

Doesn't that appointment - if it is correct - just seem to perpetuate the problem? Surely if the Board had wanted to start afresh, give a good impression, show they are even handed, would have gone for anyone except Iger? :confused:

Am I alone is suspecting that part of the reason for his appointment is to stick two fingers up to Roy Disney?

I don't really want Iger - but even being not the right man, he's still a company man, which I think is better than an outsider. I really don't think Disney needs an outsider at the helm. There's a steep learning curve when it comes to how Disney works.

Here's a link to the LA Times story posted at 11:32 a.m. today:

Disney Taps Iger to Succeed Eisner (http://www.latimes.com/business/la-031305disney_lat,0,7882703.story?coll=la-home-headlines)

*sighs*

ROBERT A. IGER NAMED CHIEF EXECUTIVE OFFICER OF THE WALT DISNEY COMPANY

BURBANK, Calif., March, 13, 2005 - The Walt Disney Company (NYSE: DIS) Board of Directors announced today that Robert A. Iger has been unanimously elected Chief Executive Officer effective September 30, 2005. He will succeed Michael D. Eisner, current CEO, who announced his intention to retire in a letter to the Board last year dated September 9, and will step down as CEO on September 30, 2005.

"After a lengthy, thorough and professional selection process, comparing both internal and external candidates against our criteria for CEO, I am pleased to announce the decision of the Walt Disney Board of Directors to select Robert Iger as the company's next chief executive officer," said Sen. George J. Mitchell, chairman of The Walt Disney Company Board of Directors. "Bob is an experienced, talented and visionary leader who has made crucial and substantial contributions toward Disney's strong performance. On behalf of the entire Board, I want to express how excited we are at the prospect of Bob leading this extraordinary company and talented management team to new levels of financial and creative success in the years ahead."

"It is truly an honor to be entrusted with the responsibility of guiding this great company that occupies such an important place in the hearts and minds of millions the world over toward a very bright future," said Iger. "It's also an honor to work with our incredibly talented and dedicated worldwide team. I feel all the more privileged to succeed Michael, whose tremendous 20-year leadership and enormous accomplishments have built this company into the world's preeminent leader in family entertainment."

"It is with a considerable amount of satisfaction and even pride that I approach the end of my term as CEO of this company," said Michael D. Eisner, former chairman and chief executive officer of The Walt Disney Company. "By every financial and creative measure, Disney is performing at its peak. I have enjoyed virtually every moment of my tenure and want to express my appreciation to the phenomenal colleagues with whom I have been privileged to work. I believe Disney is now poised for its brightest days in the years ahead under the able and insightful leadership of Bob, who has not only the qualities to succeed, but also has a keen sense of the Disney brand and how to maintain its leadership position and grow it on a worldwide scale."

The election of Mr. Iger culminates a lengthy and detailed CEO selection process that started formally when the Disney Board announced on September 21, 2004 that it would, "engage in a thorough, careful, and reasoned process to select as the next CEO the best person for the company, its shareholders, employees, customers, and for the many millions of others who care so much about The Walt Disney Company. The Board is keenly aware of the special place our company holds in the hearts of people all over the world and the importance of its responsibility in choosing a CEO." The Board also made known that day its intention to "complete the process and announce a successor as soon as possible, with an expected date of completion of June 2005."

Directors selected the executive search firm of Heidrick & Struggles in October 2004 in order to assist with the CEO selection process.

"The search and the process for considering potential candidates was thorough and exhaustive and met the most rigorous standards," said Gerard Roche, senior chairman, Heidrick & Struggles.

Mr. Iger's biography is attached. Also attached is Michael Eisner's letter to the Disney Board of Directors.

ROBERT A. IGER BIOGRAPHY

BURBANK, Calif., March 13, 2005 - Robert A. Iger was named president and chief operating officer of The Walt Disney Company in January, 2000. At that time, he also became a member of Disney's board of directors and of its executive management committee.

Iger had been chairman of the Disney-owned ABC Group, where he guided the complex merger of ABC with The Walt Disney Company. Simultaneously, he was president of Walt Disney International, where he created an organization embracing Europe, the Asia-Pacific Region and Latin America. His mission for Walt Disney International was to establish Disney's brand on a worldwide basis and consolidate international operations under a coordinated leadership.

As Disney's president and chief operating officer, Iger works with Michael D. Eisner, chief executive officer, in overseeing all aspects of The Walt Disney Company's operations on a worldwide basis. The heads of all of Disney's business units and its chief strategic officer report to both Eisner and Iger. Iger first became part of Disney's management team in 1996, when The Walt Disney Company acquired Capital Cities/ABC, where Iger had been president and chief operating officer.

During Iger's years with ABC, he obtained hands-on experience in virtually every aspect of the television network business, including news, sports and entertainment, as well as the business side of television such as program acquisition, rights negotiations and business affairs.

ABC saw tremendous growth during Iger's career there, becoming a market leader in network television and expanding into numerous cable and related ventures, including A&E, The History Channel, Lifetime, ESPN and ESPN-related businesses.

He began his career at ABC in 1974 as a studio supervisor in New York, then moved to ABC Sports, where he advanced over a 12-year period through a series of increasingly responsible management posts. He became vice president of programming, responsible for all scheduling and program acquisitions for ABC Sports in 1987. He left ABC Sports in 1988 for a promotion to executive vice president of the ABC Television Network and became president of ABC Entertainment in Los Angeles a year later. Iger was promoted to president to the ABC Television Network Group in New York in 1993 and added the title of president and chief operating officer of ABC in 1994.

He is a member of the board of directors of Lincoln Center for the Performing Arts, Inc. and New York City Outward Bound. He is a trustee of the Museum of Television and Radio and of Ithaca College, where he graduated magna cum laude.

A native of New York, Iger was born February 10, 1951. He has two daughters, Kate and Amanda, and two sons, Max and William. He is married to Willow Bay.

LETTER DATED MARCH 13, 2005 FROM MICHAEL D. EISNER, CHIEF EXECUTIVE OFFICER OF THE WALT DISNEY COMPANY TO MEMBERS OF THE BOARD OF DIRECTORS

BURBANK, Calif., March 13, 2005 - After nearly 21 years as CEO of The Walt Disney Company, it is with a wide range of positive emotions that I welcome the Board of Directors' announcement of my successor, Bob Iger. As the Board has wisely concluded, Bob is an extraordinary executive with 30 years of experience in the entertainment industry and is uniquely qualified to take charge of this incredible company. As president during the past five years, he has provided steady and inspired leadership as he helped steer Disney through a storm of challenges, bringing the company to its current thriving condition in the calm waters and bright skies of financial and creative success. As you well know, last year alone, we delivered earnings per share growth of more than 60%, resulting in record earnings and free cash flow. This fiscal year, we will deliver double digit earnings growth and again post record-high earnings. From a shareholder perspective, Disney has outperformed the other three major media companies over the last five year, three year, and one year periods.

So, it is with a considerable amount of satisfaction and even pride that I approach the end of my term as CEO of this company. There is a tinge of sadness added to these emotions, similar to the feeling one experiences at the end of a great day at Disneyland as one pulls into the station after the final E-ticket ride.

And what a ride this has been. In 1984, the company had a $2 billion equity market cap. Today, it is nearly $60 billion. Revenues were $1.5 billion; in 2004, they surpassed $30 billion. Net income was $98 million; last year, it was more than $2.3 billion.

Our creative achievements around the world in the fields of film, broadcast and cable television, consumer products and theme parks have been exceptional, driving compound annual returns for Disney stock since 1984 of 17.3%, versus the S&P 500's 13.0%. More recently, despite that storm of challenges, Disney investors have been rewarded with a 6.5% annual return during the past three years, compared to the S&P 500's 3.0%, and in the last year with 11.6% versus the S&P's 10.3%.

Disney's remarkable financial and creative growth has been achieved by a phenomenal management team. We currently have in place a group of executives who are focused, able and experienced. They have kept the company moving forward and have not been distracted by the combustion of world events or the noise of Hollywood gossip. These are seasoned individuals who have the vision to set lofty goals and the leadership to achieve them. They know the receptivity, the affection and the respect the Disney name and products command from continent to continent. We can count on them to continue to distribute creativity throughout the world, intellectual excellence throughout the world, ESPN and Disney throughout the world. Hong Kong Disneyland (our front door to China), opening on Sept 12th.of this year, along with the resort around it, is but one example.

Bob will now continue the momentum of the company and put his own visionary imprint on it as he launches Disney into the future. As I have told Bob and all of you, I am available to assist in a seamless and orderly transition. Although I intend to remain as a Disney director until the annual meeting of 2006, I will not make a request of the Board to nominate me for an additional term nor will I seek the chairmanship of the company after the retirement of Senator Mitchell.

This brings me to yet another emotion I feel as the transition begins - excitement, excitement about a book I wrote called "Camp," which gets released on Father's Day and perhaps will lead to the camp of my youth, Keewaydin, hiring me as a counselor again, excitement that my oldest son Breck got engaged to Georgia Irwin yesterday just four weeks before "Sahara," a film he directed, gets released by Paramount Pictures, excitement about all the possibilities I see before me. As much as I have loved nearly every minute of my tenure at Disney, two decades is enough time to spend as a chief executive officer of one company. I'm ready to move on and climb new mountains, while always being available to help Disney in any way I can. Beginning October 1, I expect to clean off my hiking boots, re-stock my Mickey Mouse backpack and start surveying some of the other peaks that are on the horizon.

I thank members of our management team, our entire cast, our shareholders, and the men and women who serve or have served on our Board for their enthusiasm and support for The Walt Disney Company. And mostly I thank Walt Disney for bringing to us a culture and a mouse.

Gratefully,

Michael

Good news and bad news, I guess. Eisner's "out" a year early, but he's replaced by his puppet.

Pinocchio becomes CEO, Stromboli becomes Chairman, despite his protests to the contrary. "I won't ask for it, but if they ask me I'll have to consider it." Feh.

Good news and bad news, I guess. Eisner's "out" a year early, but he's replaced by his puppet.

Just two best buds hangin' out in Hong Kong:

http://www.hongkongdisneyland.com/eng/discover/20050303_pop02.html

While I certainly think it is best to take a wait-and-see approach to how well Iger works out as CEO, there certainly isn't any really compelling reason to believe that he is simply Eisner's "puppet". He isn't even someone that was hired by Eisner.

Iger is a very experienced executive with an impressive resume and he certainly deserves a chance to prove his worth. It is nonsensical to dismiss him at this stage.

-Jeff

ROBERT A. IGER NAMED CHIEF EXECUTIVE OFFICER OF THE WALT DISNEY COMPANY

BURBANK, Calif., March 13, 2005 - After nearly 21 years as CEO of The Walt Disney Company, it is with a wide range of positive emotions that I welcome the Board of Directors' announcement of my successor, Bob Iger.

Translation: I'm still gonna have a puppet to control.

As the Board has wisely concluded, Bob is an extraordinary executive with 30 years of experience in the entertainment industry and is uniquely qualified to take charge of this incredible company.

Translation: The board did exactly as I told them to. Good doggies.

As president during the past five years, he has provided steady and inspired leadership as he helped steer Disney through a storm of challenges, bringing the company to its current thriving condition in the calm waters and bright skies of financial and creative success. As you well know, last year alone, we delivered earnings per share growth of more than 60%, resulting in record earnings and free cash flow. This fiscal year, we will deliver double digit earnings growth and again post record-high earnings. From a shareholder perspective, Disney has outperformed the other three major media companies over the last five year, three year, and one year periods.

What is this WE crud? Taking credit for other as usual I see.

Our creative achievements around the world in the fields of film, broadcast and cable television, consumer products and theme parks have been exceptional, driving compound annual returns for Disney stock since 1984 of 17.3%, versus the S&P 500's 13.0%. More recently, despite that storm of challenges, Disney investors have been rewarded with a 6.5% annual return during the past three years, compared to the S&P 500's 3.0%, and in the last year with 11.6% versus the S&P's 10.3%.

The last THREE years? What about the last 10+ years?

Disney's remarkable financial and creative growth has been achieved by a phenomenal management team. We currently have in place a group of executives who are focused, able and experienced.

Translation: My puppets do what I tell them to.

Bob will now continue the momentum of the company and put his own visionary imprint on it as he launches Disney into the future. As I have told Bob and all of you, I am available to assist in a seamless and orderly transition. Although I intend to remain as a Disney director until the annual meeting of 2006, I will not make a request of the Board to nominate me for an additional term nor will I seek the chairmanship of the company after the retirement of Senator Mitchell.

Translation: You'll never get rid of me infidels!

This brings me to yet another emotion I feel as the transition begins - excitement, excitement about a book I wrote called "Camp," which gets released on Father's Day and perhaps will lead to the camp of my youth, Keewaydin, hiring me as a counselor again, excitement that my oldest son Breck got engaged to Georgia Irwin yesterday just four weeks before "Sahara," a film he directed, gets released by Paramount Pictures, excitement about all the possibilities I see before me.

Translation: Buy my book because when I am no longer CEO. I can't bilke the company out of bonuses I didn't really deserve in the first place anymore. Maybe I can sucker them into making me a counselor so I can make them my puppets too.

As much as I have loved nearly every minute of my tenure at Disney, two decades is enough time to spend as a chief executive officer of one company. I'm ready to move on and climb new mountains, while always being available to help Disney in any way I can. Beginning October 1, I expect to clean off my hiking boots, re-stock my Mickey Mouse backpack and start surveying some of the other peaks that are on the horizon.

2 decades is TOO MUCH of you. Notice how he mentions at least TWICE about being able to "help Disney in any way"

While I certainly think it is best to take a wait-and-see approach to how well Iger works out as CEO, there certainly isn't any really compelling reason to believe that he is simply Eisner's "puppet". He isn't even someone that was hired by Eisner.

Iger is a very experienced executive with an impressive resume and he certainly deserves a chance to prove his worth. It is nonsensical to dismiss him at this stage.

-Jeff
I dismiss him nonetheless. Eisner preferred him, after initially not preferring him. Why Eisner changed his mind is anyone's guess. My guess is that it keeps Eisner in charge.

Oh yay. Eisner's sock puppet will now be running the company. Yay.

Can I vomit now? :(

I know that in bad situations, they sometimes say to try to find the good side (if there is one.)

I worked for the local hospital, the largest one in town, for over 5 years (still have lots of family working there.) We had a HORRIBLE CEO, much like Eisner, one who brought the morale of the whole corporation down (several thousand people.)

When he was finally asked to resign, who was in the lead to succeed but his right hand puppet. This was a guy who, by rumor, used shady tactics in his climb to the top. We all wanted ANYONE but him. When he got the job, we all thought we were doomed.

Surprise, this guy turned out to be a decent CEO. He started bringing back employee incentives that were taken away, among other things. Now I hear good comments about him from most of the employees. None of us saw that coming, it was actually a nice surprise.

Is it possible that when Iger takes over that maybe he might not be so bad after all? I mean, might ANYTHING be an improvement over Eisner?

Remember, I am just speculating, I am only baseing this thought on the above story. I know NOTHING of the workings of big business. Just trying to keep positive thoughts about it. ;) :rolleyes:

Like I said in another post, I will wait a year or two, once he is really settled into this job and then I will pass judgment. Everything we read and hear is speculation until we see the final results. I think he does not really take over until October so until NEXT October I will not pass judgment or speculate on anything myself. I think he needs to be given a fair chance.

Nobody will ever agree on who is best for the job!

Nobody will ever agree on who is best for the job!

The only thing that would satisfy some members of this board would be for them to dig Walt up, invent the technology to reincarnate dead bodies, and give him absolute control over every miniscule aspect of the company.

I fear Iger's biggest obstacle to overcome will be the closed-mindedness of the vocal minority who have nothing valuable to say buy who can only mindlessly chant anti-Eisner pabulum and who decry Iger by proxy. Perhaps he can quickly do something to at least shut them up long enough for him to have a chance at real progress.

I think the board is a bunch of pushovers and this isn't the first time Roy has ousted a president and it probably won't be the last. It seems to be his MO. Just because the last name is disney does not mean they are a walt. So, we'll see what this guy does. If they don't like him changes will be made again, but not all changes are going to be for the best.

The first move that they could do to convince me that it won't continue to be business as usual would be to find someone other than Eisner to be chairman, then take him at his word and get him off the board. If Iger actually gets a chance to run the company without Mikey looking over his shoulder, I'll be a lot less wary. We'll have to wait and see.

The only thing that would satisfy some members of this board would be for them to dig Walt up, invent the technology to reincarnate dead bodies, and give him absolute control over every miniscule aspect of the company.

I fear Iger's biggest obstacle to overcome will be the closed-mindedness of the vocal minority who have nothing valuable to say buy who can only mindlessly chant anti-Eisner pabulum and who decry Iger by proxy. Perhaps he can quickly do something to at least shut them up long enough for him to have a chance at real progress.

First - I agree, and some people don't realize without his friends/partners who spent a lot of time "reelin' him back in" Walt wouldn't of accomplished much.

Second, a big global public celebration seems like a nice place to try and make nice with the natives - Eisner ends his tenure with a bang and right thereafter Iger comes in announce new things coming afterward that makes everyone happy and leads the helm for Epcot 25 (coming 2007).

I would like to just announce that information has recently come to my attention that puts me firmly into "Support Iger for CEO" camp.

He is married to Willow Bay. Anything that means I will have a greater opportunity to look upon Willow Bay is to be supported. Willow Bay is no Soledad O'Brien but is an acceptable alternative.

There's no need to wait and see with Iger; he's a miserable choice if anyone's expecting any meaningful change to come about.

Iger is a graduate of the Michael Eisner School of Management. He's also primarily a numbers man. He sees the company assets as spreadsheets and numbers, is equally as slavish to the pursuit of profits and is equally as mindless of tradition. He also hasn't got a clue what makes for a good movie, tv show, cartoon or theme park attraction.

He's an excellent accountant and he'll run the company like one; in pursuit of numbers.

The only asset he brings to the table is that he's not Eisner so it's possible he could mend a few broken relationships. By all accounts, he's much less abrasive than the hateful egomaniac and imbecile Eisner is so at least there's that.

But little is going to change for the better under this guy. He has absolutely no creative vision whatsoever.

There is an article in the New York Post that reports that several Disney Board members were not all that enamored of the idea of promoting Bob Iger to the Disney CEO position. So at least with that we have some kindred souls on the Disney Board. The article goes on that those Board members' votes favoring Iger as CEO come at the exchange of Michael Eisner not remaining on the Board in any way after his retirement in 2006.

CNBC Monday morning was all over the story of the CEO changeover at Disney. The anchor people on the early morning "Squawk Box" show were literally pouncing, aggressively with questioning, all kinds of stock analysts and corporate headhunter search firms. It's as if the book "Disney Wars" had inspired these news people to take up the "cause" of reform at Disney as articulated by Stanley Gold, Roy Disney and many stockholders and fans who want to see a return to the good ol' Pixie Dusted days of Walt. But really their questions in light of the Ovitz trial and other trials, mediocre videos (Joe Kernan pleaded on air he "tried to like 'Brother Bear'" and bought the reissue of "Bambi" and the new release of "The Incredibles" but had doubts about any new product Disney would be doing) and other things Disney fans have noticed for years and years... Their questions in light of what these mean to the quality growth of Disney stock seemed fair and valid to me. Disney is a unique business story as well as pop cultural icon. Not just any ol' person can run Disney. These CNBC news anchors seemed keenly aware of that fact and that's why, I guess, the grilling all the guests got Monday morning on their show.

I'm a little heartened that Bob Iger seems to be making noises that he wants to resume talks with Pixar and Steve Jobs and he wants to foster an "entreprenuerial spirit" within Disney's various departments to get the creativity flowing again.

Then again it is very early in this process, too soon to see clearly the future paths to be taken. Too early to know whether Mr. Iger will be more of the same, a puppet as some earlier posts here have suggested, or his own man. And if Iger is his own man, will he hear and understand fans and families sentiments on taking Disney in more traditional and family-friendly directions, such as an updated "What would Walt do?" but updated for current technologies? Will he stop putting Disney parks all over the world and instead build up the ones Disney already owns? And if he does too much pre-appointment "signalling" will he raise the ire of the Board, stockholders, fans, consumers and an internal backlash from those whom Eisner hired and put in there?

This is a soap opera that just keeps on rolling, doesn't it? ;)

From New York Post, March 15, 2005: "Crouching Iger"

http://www.nypost.com/business/42495.htm

Short quote:

March 15, 2005 -- Disney's board of directors agreed to name Bob Iger as the company's next CEO only after a contentious board meeting in which current chief Michael Eisner agreed not to seek a continuing role at the media giant, The Post has learned.

Four of Disney's 12 directors were initially hesitant to name Iger as Disney's next CEO, according to a source close to the matter.

The board finally agreed to name Iger — who was Eisner's preferred choice — to the post after Eisner agreed to not seek to remain on the board of directors after his current term expires in 2006.