Board Split on Iger

[Sarangel]

From the New York Post:

Disney's board of directors have become concerned that the company's CEO search is rigged in favor of president Bob Iger — so much so that Chairman George Mitchell has told management to tamp down its public campaign on behalf of Iger, The Post has learned.
At the same time, a source close to the matter said that the board is sharply divided on the succession issue: three board members, including Eisner and Iger, unequivocally back the company president, while three directors are said to be against his appointment.

The remaining six directors, the source said, are more open-minded and are waiting to consider candidates from outside the company.

In a statement, Mitchell said it is "absolutely untrue" that he told management to tone down the pro-Iger rhetoric.

As for the board split, he said: "To the best of my knowledge, no board member other than Michael Eisner has made any statement, public or private, as to how he or she would vote. The board will make its decision after it has been through the process, not before or during it."

Meanwhile, some outside candidates have been privately griping that they believe the search is fixed, and are worried that the board will not give full consideration to candidates other than Iger, a source said.

"Some are saying they are not going to be dragged into a beauty contest that is rigged," said this source.

Among the outside candidates that are expected to be contacted are News Corp. President Peter Chernin; eBay chief Meg Whitman; and Viacom co-prez Les Moonves.

Last year, following Eisner's announcement in September that he would step down as CEO when his contract expires in 2006, the board hired search firm Heidrick & Struggles to conduct an independent search for Eisner's replacement.

But to date, the board has not yet sought out external candidates, although it plans to begin doing so after next week's annual meeting.

"It's [Eisner] doing what he can to arrange his heir apparent," said one source close to the matter, explaining why outside candidates have not yet been interviewed.

 

[Peter Pirate]

I've heard all of the negativity about Iger here on the DIS and I'd like to ask all of those detractors which of the three mentioned (Moonves, Chernin or Whitman) you'd think would be better suited for Disney than Iger?

After hearing these three names over and over I'd think everyone would be screaming for the board to just hire Iger and get on with it.

 

[wtg2000]

I think Disney needs a new regime, much as it did in 1984. Iger=Eisner I believe, as he will hang on behind the scenes. Surely there has to be somebody better out there. Is America that bereft of competent people?

 

[Peter Pirate]

WTG, the answer to your question is no, America is not devoid of competent people...But the competent people being mentioned for the job (other than Iger) are Moonves, Chernin and Whitman...None of wom I'd want at the top of Disney. Once again it looks like it's better to stay with the devil we know. Just my thoughts of course.

 

[wtg2000]

One guy's from ebay? So instead of making a resort reservation you get the room by auction? I would definitely want someone with a background in creative endeavors. I would think that Disney would be a very attractive post, but only if the CEO believes that Eisner won't be lurking in the background. I think Disney can do much better than a devil - known or unknown. I mean, look how Eisner worked out!

 

[raidermatt]

No, none of those names give me the holly jollies either.

Given the amount of time going into the search, as well as the fact that a professional firm has been hired to help with the search, one would think they could come up with some strong cadidates that aren't the same ones most could have come up with anyway.

It reminds me of a situation from when I used to work at Bank of America. After the takeover by, er, I mean merger with NationsBank, the company hired a firm and spent over $1 million to determine the best name to go with.

A firm actually received over a million smackeroos to tell us that it would be a bad idea to give up the Bank of America brand name.

Now, in this case, Iger is not the no-brainer that the BofA brand was, but I still have this feeling that H&S is getting paid a lot of money to tell the majority of the board what they want to hear, as opposed to REALLY going out and finding the right person(s). After all, if an independent firm says Iger is the best choice (or conveniently doesn't find any other better choices), the public can't really complain, right?

 

[Peter Pirate]

I think you're right Matt. I agree that there is someone out that that would be thrilled with the creative opportuniies in running Disney but the Board isn't looking. Further, the save Disney group has never really done their job by recommending this person either.

Disney is once again making money (dare I say it, another Eisner recovery) and the Board isn't willing or doesn't see the need to make wholesale changes. While this isn't what I'd like to see, I stand firm in believing that Iger at least knows Disney and we stand some chance that the man he'll be at the top will be much different than the man that served Eisner.