Roy E. Disney Resigns from Disney Board...

[olegc]

This is not good - but I pray it spurs change....

NEWS ALERT
from The Wall Street Journal

November 30, 2003

Walt Disney Co. Vice Chairman Roy E. Disney submitted his resignation from
the company board and called for Chairman and Chief Executive Michael Eisner
to step down.

For more information, see:
http://online.wsj.com/article/0,,SB1...883000,00.html

[merlinjones]

This is very good!

The last time Roy resigned from the board, he orchestrated the entire change over of the company. Don't forget that the deal for the shares he sold a few months back allow him to continue to vote for five years - - if he bought more with that money...

Unfortunately, the story is restricted. Can anyone post a significant snippet?

[olegc]

I would have but I remember something about rules for this site - that the text of a page can't be copied but that you can provide pointers...

I will say that he sent a 3 page letter to Eisner which essentially said he should retire "It is my sincere belief that it is you who should be leaving and not me," Mr. Disney wrote. "Accordingly, I once again call for your resignation or retirement."

He gave Eisner credit for the first decade of success but chided him for recent history and micro-management.

However, it also made a comment that the letter seemed to indicate that the nominating group for the board left his name off the listof directors to be elected for the coming year. The letter also said he'd resign his post as chairman of Feature Animaiton...

[Andrew]

Google News has nothing yet. I'll link it when it does.

Please remember that news stories are copyrighted material, and may not be reproduced (except for "fair use" snippets). Press releases are exempt from this restriction, though.

[Darkbeer]

I just posted the Drudge Report link, the Wall St. Journal is a cost subscription link, therefore I can't use it...

But here is one sentence from the article by Bruce Orwall of the Wall Street Journal

Mr. Disney, nephew to the late Walt Disney, sent Mr. Eisner a tough three-page letter severely criticizing his leadership during the past seven years. "It is my sincere belief that it is you who should be leaving and not me," Mr. Disney wrote. "Accordingly, I once again call for your resignation or retirement."

[merlinjones]

Drudge is covering this

www.drudgereport.com

(Remember, for Roy to fight the board and Eisner, he has to resign his post per SEC rules)

[Darkbeer]

The AP version of the story is out, the link is in the news and business sections.....

[EandCDad]

While it's nice to think that this is some move on Roy Disney's part to bring about change, here is something that shouldn't be overlooked.

From the San Diego Union Tribune site, but I'm sure it's the same report hitting most papers websites:

Disney's resignation may be a pre-emptive move to avoid being forced off the board of The Walt Disney Co. The board's governance and nominating committee has decided not to recommend Disney for another term because he is over the mandated retirement age of 72, sources close to the company said Sunday.

[merlinjones]

"You well know that you and I have had serious differences of opinion about the direction and style of management in the company in recent years,'' Mr. Disney wrote to Mr. Eisner. "For whatever reason, you have driven a wedge between me and those I work with even to the extent of requiring some of my associates to report my conversations and activities to you. I find this intolerable.''

"Michael, I believe your conduct has resulted from my clear and unambiguous statements to you and the board of directors that after 19 years at the helm you are no longer the best person to run the Walt Disney Company,'' Mr. Disney wrote, adding that in the last 10 years the company "has lost its focus, its creative energy, and its heritage.''

http://www.nytimes.com/2003/11/30/bu...partner=GOOGLE

[merlinjones]

FT: Even more of Roy's letter. Hey, he sounds just like us!!!:

>>Attacking the "timidity" of group investments in its key theme parks in California, Paris and the resort under construction in Hong Kong, he said "you have tried to build parks on the cheap and they show it and the attendance figures reflect it".

Under his control, the company was seen by virtually everyone associated with it as "rapacious, soulless, and always looking for the quick buck rather than long-term value, which is leading to a loss of public trust".

Also included in his catalogue of complaints were the "creative brain drain", which he described as "real and continuing", and which was especially trying for Mr Disney who, as chairman of the feature animation division, has seen his empire whittled down by heavy lay-offs.<<

http://news.ft.com/servlet/ContentSe...=1012571727088

[disneydreams]

Originally posted by Andrew
Google News has nothing yet.

Google News has something!

Three pages of 'em...whoa...

[Andrew]

Originally posted by disneydreams
Google News has something!

Three pages of 'em...whoa...

They sure do now! Thanks for the update.

[Disney Vault]

I am shocked by this. I still dont know if this is a good thing or bad thing in the long run. What do you all think? I hope this brings major changes to the Disney company. I never knew Roy hated Micheal so mich.

[merlinjones]

someone at animationnation posted the whole letter:

>>November 30, 2003

Mr. Michael D. Eisner, Chairman
The Walt Disney Company
500 South Buena Vista Street
Burbank, CA 91521

Dear Michael,

It is with deep sadness and regret that i send you this letter of resignation from the Walt Disney
Company, both as Chairman of the Feature Animation Division and as Vice Chairman of the Board of
Directors.

You well know that you and I have had serious differences of opinion about the direction and style of management in the company in recent years. For whatever reason, you have driven a wedge between me and those I work with even to the extent of requiring some of my associates to report my
conversations and activities to you. I find this intolerable.

Finally, you discussed with the Nominating Committee of the Board of Directors its decision to leave my name off the slate of directors to be elected in the coming year, effectively muzzling my voice on the Board – much as you did with Andrea Van de Kamp last year.

Michael, I believe your conduct has resulted from my clear and unambiguous statements to you and the Board of Directors that after 19 years at the helm you are no longer the best person to run the Walt Disney Company. You had a very successful first 10-plus years at the company in partnership with Frank Wells, for which I salute you. But since Frank’s untimely death in 1994, the company has lost its focus, its creative energy, and its heritage.

As I have said, and as Stanley Gold has documented in letters to you and other members of the Board, this Company under your leadership has failed during the last seven years in many ways:

1. The failure to bring back ABC Prime Time from the ratings abyss it has been in for years and your
inability to program successfully the ABC Family Channel. Both of these failures have had, and I believe will continue to have, significant adverse impact on shareholder value.

2. Your consistent micro-management of everyone around you with the resulting loss of morale throughout this company.

3. The timidity of your investments in our theme park business. At Disney’s California Adventure, Paris, and now Hong Kong, you have tried to build parks on the cheap and they show it and the attendance figures reflect it.

4. The perception by our stakeholders –consumers, investors, employees, distributors and suppliers that the Company is rapacious, soul-less, and always looking for the “quick buck” rather than
long-term value which is leading to a loss of public trust.

5. The creative brain drain of the last several years, which is real and continuing, and damages our Company with the loss of every talented employee.

6. Your failure to establish and build constructive relationships with creative partners, especially Pixar, Miramax, and the cable companied distributing our products.

7. Your consistent refusal to establish a clear succession plan.

In conclusion, Michael, it is my sincere belief that it is you who should be leaving and not me. Accordingly, I once again call for your resignation or retirement. The Walt Disney Company deserves fresh, energetic leadership at this challenging time in its history just as it did in 1984 when I headed a restructuring which resulted in your recruitment to the Company.

I have and will always have an enormous allegiance and respect for this Company, founded by my uncle, Walt, and father, Roy, and to our faithful employees and loyal stockholders. I don’t know if you and other directors can comprehend how painful it is for me and the extended Disney family to arrive at this decision.

In accordance with Item 6 of Form 8-K and Item 7 of Schedule 14A, I request that you disclose this letter and that you file a copy of this letter as an exhibit to a Company Form 8-K.

With sincere regrets,
Roy E. Disney

Cc: Board of Directors<<

Animated News http://www.animated-news.com<<


For taking this necessary stand, Roy is my hero!

[wendybeth]

Wow! I just got home from the pet store (welcome to our newest household kitty, Samwise; a very cute little bundle of furry energy ) and I log on, expecting another slow newsday... I can't wait to read the article in it's entirety! Good show, Roy. Whether it was a pre-emptive move or geunuine disgust with Eisner and his little minions (which I am inclined to believe), he obviously sees the damage current leadership is doing and knows what it will take to stop it. I really feel for him; this is his life's work and his Uncle's dream being destroyed, and I applaud his taking a stand, a very public one at that. It will be interesting to see what the Disney corporate spin meisters do with this- they have their hands full, what with the BTMRR report, the impending lawsuit against the board of directors, Euro-Disney's dismal financial picture, etc....

[Pirate Girl]

Guys and gals,
This is a really interesting development! It's sad that Mr. Disney has to resign from the board in order to get the things done in the company that he feels are right. But he's making a really amazing statement by doing so! Are there any remaining Disney family members on the board? Does anyone know?

[wendybeth]

Thanks, MJ- your post hit while I was writing! Wow again; I have to be honest- reading through Roy's letter was not unlike reading one of your posts. I wonder if Mr. Disney reads MousePad-lol. I'm kind of alternating between happy and sad; I am hopeful that the Board will pull their heads out of their..well, you know.., and yet I feel terrible for Roy Disney and all he has had to deal with over the years.

[cemeinke]

2004's Annual Meeting should be pretty interesting - I wonder what remote location they'll select this time? Nome perhaps?

[Disney Vault]

Do they only all get together once a year for a meeting? I want to know what micheal Eisner has to say about all this. This just makes me hate him even more. And when is the annual meeting?

[merlinjones]

>>2004's Annual Meeting should be pretty interesting - I wonder what remote location they'll select this time? Nome perhaps?<<

Even better, DCA!

[Disney Vault]

I found out they are meeting Monday and Tuesday in New York. Although I agree with merlinjones that DCA would be a better place to get away from the crowds.

And worse case scenario is that we will be stuck with Eisner for 11 more years. He is 61 and in 11 years he will be at the required age to retire. We might just have to be patient.

[Andrew]

Originally posted by merlinjones
>>2004's Annual Meeting should be pretty interesting - I wonder what remote location they'll select this time? Nome perhaps?<<

Even better, DCA!

Holding the meeting in the Hyperion theater would be a bold and courageous move. It would invite every shareholder within driving distance of LA to show up and voice their complaints.

I don't see it happening--probably another middle-of-nowhere meeting hall, hopefully snowed in like last year.

[wendybeth]

DCA came to my mind too, but it would terribly difficult to remain in denial in the midst of that particular Disney property....

[Saratoga75]

Well I am glad that Roy Disney stated his views in his resignation letter to Eisner. His points were absolutely right. . . disney hasnt been the same since Frank Wells died in a helicopter crash in 94
the increasingly lack of creativity at Disney, the blunder of California Adventure, etc etc on and on and on. . yes, it should be Eisner resigning not Roy Disney. . and yes Eisner is no longer the best person to run Disney. . new leadership is needed!

[Mr. Wiggins]

... since Frank’s untimely death in 1994, the company has lost its focus, its creative energy, and its heritage....

Reading Roy's letter to a friend on the phone, I choked up with tears at these words. I don't know if it was for joy or relief or hope or rage -- probably a little of all.

Those of us who have experienced the trashing of Walt's heritage first hand can only pray that the decade-long nightmare that started with Frank's death is at last beginning to end.