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Dow Jones Business News
Another Pension Fund to Withhold Vote for Disney's Eisner
Thursday February 26, 11:39 am ET
By Arden Dale
NEW YORK -- Walt Disney Co. (NYSE
IS - News) Chairman and Chief Executive Michael Eisner got yet another "no confidence" vote from shareholders, with a second big California pension fund announcing it won't support him for re-election.
The California State Teachers' Retirement System said it will withhold a vote to retain Mr. Eisner in his current position because of concerns about his strategic vision.
Calstrs' decision followed Wednesday's announcement by the California Public Employees' Retirement System that it -- the nation's biggest public pension fund -- won't support Mr. Eisner.
"We're concerned about his strategic vision, where he's taking the company," said Calstrs spokeswoman Sherry Reser. "We believe his current role as board chair and CEO does need to be reevaluated, and we're sending a message to the board that they do need to take a look at that."
She noted Calstrs owns eight million shares of Disney and that the stock has had a minus 5.29% annualized return over the past five years. "Certainly, that indicates problems," said Ms. Reser.
Beyond its concerns over Mr. Eisner, Calstrs registered discontent with Disney presiding director George Mitchell, four members of the company's audit committee and Disney auditor PricewaterhouseCoopers (News - Websites) LLP, withholding its vote to re-elect all of them.
Concerns about Mr. Mitchell centered on what Calstrs said was inadequate disclosure of his relationship with Disney. In the case of PricewaterhouseCoopers and the audit committee, Calstrs didn't like that fact they didn't reveal the nature of $6.5 million in fees described simply as "other fees," according to Ms. Reser.
Elsewhere around the country, pension funds that hold big stakes in Disney have been less vocal about how they will weigh in at Disney's crucial annual meeting next week. Among them are The College Retirement Equities Fund, part of the mammoth financial-services firm TIAA-CREF, the Teacher Retirement System of Texas and the State of Wisconsin Investment Board. Each declined to comment, citing a policy of not disclosing proxy votes.
Another Pension Fund to Withhold Vote for Disney's Eisner
Thursday February 26, 11:39 am ET
By Arden Dale
NEW YORK -- Walt Disney Co. (NYSE
IS - News) Chairman and Chief Executive Michael Eisner got yet another "no confidence" vote from shareholders, with a second big California pension fund announcing it won't support him for re-election.The California State Teachers' Retirement System said it will withhold a vote to retain Mr. Eisner in his current position because of concerns about his strategic vision.
Calstrs' decision followed Wednesday's announcement by the California Public Employees' Retirement System that it -- the nation's biggest public pension fund -- won't support Mr. Eisner.
"We're concerned about his strategic vision, where he's taking the company," said Calstrs spokeswoman Sherry Reser. "We believe his current role as board chair and CEO does need to be reevaluated, and we're sending a message to the board that they do need to take a look at that."
She noted Calstrs owns eight million shares of Disney and that the stock has had a minus 5.29% annualized return over the past five years. "Certainly, that indicates problems," said Ms. Reser.
Beyond its concerns over Mr. Eisner, Calstrs registered discontent with Disney presiding director George Mitchell, four members of the company's audit committee and Disney auditor PricewaterhouseCoopers (News - Websites) LLP, withholding its vote to re-elect all of them.
Concerns about Mr. Mitchell centered on what Calstrs said was inadequate disclosure of his relationship with Disney. In the case of PricewaterhouseCoopers and the audit committee, Calstrs didn't like that fact they didn't reveal the nature of $6.5 million in fees described simply as "other fees," according to Ms. Reser.
Elsewhere around the country, pension funds that hold big stakes in Disney have been less vocal about how they will weigh in at Disney's crucial annual meeting next week. Among them are The College Retirement Equities Fund, part of the mammoth financial-services firm TIAA-CREF, the Teacher Retirement System of Texas and the State of Wisconsin Investment Board. Each declined to comment, citing a policy of not disclosing proxy votes.
