Aulani Problems Lead to Firings

[Sammie]

I posted this on the Lewis thread but it fits here too.

I have often questioned the low dues at BLT and now you have to ask did Lewis do the same thing to BLT and will the owners be faced with a dues increase. The other executives fired seemed to have moved on to other jobs, when did they work with Lewis, prior to BLT being built?

Bill

A friend who was at the 2010 Annual Meeting said Lawrence was there and sat next to Jim and he was on the board of directors then. He presenting data on dues and increases and gave the financial status report.

 

[DisneyFan68]

I hope these aren't dumb questions but I don't get how the two tiers would work? And would the higher tier people be paying for the shortfall that the lower tier is not paying for so essentially the higher tier is paying for their own share plus some of the lower tier's share too?

Are the maintenance fees prorated between the timeshare portion and the hotel? Or does the timeshare MF cover the entire resort's operating costs?

 

[GatorMomInNC]

I don't pretend to understand how any of this works, but it is obvious this caused a LOT of internal issues at Disney - bad enough to fire high ranking people without any severance. That must mean that Disney is going to take a big hit financially. I wonder if this will effect their stock price tomorrow morning. Notice that the story broke after hours.

 

[nytimez]

Is Disney already too high? One site was showing annual dues for the Mariott next door as $1470 per week for a 3 BR. Why will Disney cost so much more?

It's the Disney Difference!

 

[MASrules]

My guess is that the new dues will be higher than what the current owners pay. If DVC is only allowed to raise them 15%, then the higher dues paying owners will have the standard 2%-7% raise each year in dues. The lower paying dues owners will have a 15% raise every year until they reach the exact number of the higher dues payers. That way in several years everyone will be paying the same and all will have a single modest increase each year.

That is how I would handle it.

 

[granmanh603]

It's the Disney Difference!

yeah in the beginning the Disney Difference was there....not so much in the last 5 years or so

 

[nunzia]

Wow...I'd think there still has to be more to this. Three top execs fired for 'accidentally' having dues too low? Tip of the iceberg I think.

 

[nytimez]

Wow...I'd think there still has to be more to this. Three top execs fired for 'accidentally' having dues too low? Tip of the iceberg I think.

It's a significant problem that could have bankrupted the resort -- or the equivalent thereof for such a property -- within a few years. I wouldn't be surprised if there was more to the story, but I don't think there has to be more -- that problem alone strikes me as a terminable error.

 

[CMOORE185]

Wow...I'd think there still has to be more to this. Three top execs fired for 'accidentally' having dues too low? Tip of the iceberg I think.

Which makes me wonder what the JL effect will mean in the not so distant future. What other shenanigans was JL pulling over the years? Were BLT dues underestimated and their due for a large increase in dues soon? Someone else wrote in another thread that JL purposefully used cheap materials at BLT to keep expenses down, commenting that owners dues can pay for the upgrade later. What else are we going to find out he did?

 

[hakepb]

Wow...I'd think there still has to be more to this. Three top execs fired for 'accidentally' having dues too low? Tip of the iceberg I think.

If the dues difference is severe enough, the developer (DVD) is then on the hook for the difference, which effects DVD profit, and thus eventually impacts Disney S.E.C. filings.

This is near the end of the fiscal year for Disney. Were execs manipulating numbers to get a big bonus this year despite numbers expected to take a big hit next year?

 

[chalee94]

It's a significant problem that could have bankrupted the resort -- or the equivalent thereof for such a property...

yeah, with timeshares the risk is that you'll have a "special assessment." 5 years down the road, aulani owners might have gotten a bill for an extra $20 per pt (or whatever) and have to pay that bill on top of their regular annual dues.

 

[cobbler]

I posted this on the Lewis thread but it fits here too.

I have often questioned the low dues at BLT and now you have to ask did Lewis do the same thing to BLT and will the owners be faced with a dues increase. The other executives fired seemed to have moved on to other jobs, when did they work with Lewis, prior to BLT being built?

Bill

A friend who was at the 2010 Annual Meeting said Lawrence was there and sat next to Bill and he was on the board of directors then. He presenting data on dues and increases and gave the financial status report.

I have seen Lawrence quite a few times. We bought in 2005 and went to the '05 annual meeting, if I recall correctly he was there in the same capacity as Sammie has stated.

I have seen him on the '07 and '08 Member Cruises as well.

Looking back I do remember he was pretty much glued to Lewis side whenever they were out in public. Maybe just good friends who knows.

I do know that Jim was very nice, spoke with us, and had genuine interest during the '07 cruise but he was very different in '08. Almost unapproachable - or at the very least uninterested in mingling with members unless he had to.

 

[Simba's Mom]

Boy, would I love to be a fly on the wall at the 2011 Owners' Meeting. I wonder how they'll spin this one? Was anyone else at the 2007 meeting where they had the big announcement about building Aulani, and they even had the dancer with the fire baton?

 

[Donut23]

I don't know.....to me, Aulani has always had a bit of a black cloud hovering over it.

First, the buy the property and announce the project - and the economy tanks, airfare spikes, people question if it's the best time to build.

Next - the fire. We have DVC friends who were at the Marriott and watched it...and said it seemed more involved than reported in the press....just saying.

Next - no worries about sales, our loyal guests from Japan will be the main block of owners....and then the earthquake.

Now.....oops, we guessed wrong with maintenance expenses so they STOP SELLING. What? Disney cannot take $$$$$.


Do you ever get those feelings that something just isn't right. Nothing you can relly put your finger on.....but.. You know, the hair on the back of your neck twitches ..... those red-flag moments? I wonder........

 

[BBG-BLT]

I have to say "GOOD FOR DISNEY" and not giving severance!! I'm sick of over-paid executives getting even more money for when they are fired due to being inept.

Increases my respect for Disney 1,000 fold.

As a DVC member and a share holder.

 

[PirateFrank]

I have to say "GOOD FOR DISNEY" and not giving severance!! I'm sick of over-paid executives getting even more money for when they are fired due to being inept.

Increases my respect for Disney 1,000 fold.

As a DVC member and a share holder.

I'm not sure where you're getting this. There aren't many contractual severance packages out there that are paid if an employee is fired with cause. Executives too. Is there some published list of golden parachuted executives that were fired for cause that is giving you this mindset? Can you provide a reference?

 

[disneychic]

Interesting. It's always intriguing when companies "clean house" at the executive level.

 

[hakepb]

I'm not sure where you're getting this. There aren't many contractual severance packages out there that are paid if an employee is fired with cause. Executives too. Is there some published list of golden parachuted executives that were fired for cause that is giving you this mindset? Can you provide a reference?

Can you say Michael Ovitz?

http://www.time.com/time/specials/packages/completelist/0,29569,1848501,00.html

 

[Dizny Dad]

Boy, would I love to be a fly on the wall at the 2011 Owners' Meeting. . . . . . . ..

So do it!

It would prove to be interesting. Maybe they will hand out two (2) pins per family since Jim wont be counting.

 

[gkrykewy]

I'm not sure where you're getting this. There aren't many contractual severance packages out there that are paid if an employee is fired with cause. Executives too. Is there some published list of golden parachuted executives that were fired for cause that is giving you this mindset? Can you provide a reference?

That's a strawman because most executives in such circumstances "stepped down," even if that was the functional equivalent of being fired with cause. Carly Fiorina is one example.