Goofyposter
Director of Farmland Defense
- Joined
- Oct 18, 2001
- Messages
- 2,388
Business - Reuters
CEO Eisner to Step Down in Sept 2006 -WSJ
32 minutes ago
NEW YORK (Reuters) - Michael Eisner plans to step down as Walt Disney Co.'s chief executive when his contract expires in September 2006, the Wall Street Journal said on Friday.
The decision signals the end of the 62-year-old Eisner's two-decade reign at the helm of the Burbank, California-based company. Eisner has presided over a vast expansion of one of the world's best-known brands, whose businesses range from theme parks to films to the ABC television network.
It also comes six months after Eisner, who became chief executive in 1984, narrowly survived a tumultuous battle led by dissident shareholders Stanley Gold and Roy Disney, a nephew of founder Walt Disney, to oust him from Disney leadership. Eisner was stripped of his role as Disney chairman.
"It will probably be a positive because of the turmoil, and the friction between him and the board," said Steve Previs, an analyst with Jefferies International in London.
Disney did not immediately return calls in the United States and Europe for comment.
In an interview with the newspaper, Eisner said Disney's recent crises played no role in his decision to step down.
He said the decision was "not asked for, not motivated by current circumstances at all," adding that with Disney on an upswing, "this was the time to give the board two years notice, so that there will be a comfortable period of succession."
Last month, Disney said profit for its fiscal third quarter ended June 30 rose 20 percent to $604 million, or 29 cents per share, on revenue of $7.5 billion.
The timing of Eisner's exit is expected to be officially announced later on Friday, the newspaper said. It is unclear whether Disney's board would have offered Eisner a new contract if he wanted one, it said, citing unnamed people close to the situation.
IGER PREFERRED SUCCESSOR
In an interview published on Sunday in the Los Angeles Times, Eisner said Disney President Robert Iger was his "preferred choice" to succeed him.
Iger, a veteran broadcasting executive, told the newspaper he was interested in the job.
"There are quite a few good candidates for the job, both inside and outside the company," said Previs at Jefferies International. "(Eisner) has said he prefers Iger, but I don't think that will have too much weight because of his battles with the board."
The CEO search, to be led by Chairman George Mitchell, is likely to include many candidates, the Journal said, citing unnamed people close to the company.
It said these might include such former Disney executives as eBay Inc. CEO Meg Whitman, Gap Inc. CEO Paul Pressler, News Corp. Chief Operating Officer Peter Chernin, and Jeff Bewkes, who chairs Time Warner Inc.'s entertainment and networks group.
Whitman has said she will remain eBay's CEO until at least 2006. Gold has said Apple Computer Inc. CEO Steve Jobs (news - web sites) might also be a strong candidate.
Eisner's planned departure may make it more difficult for opponents to oust him, but Roy Disney's group has signaled it is likely to campaign to elect a dissident slate of directors.
At Disney's March 3 annual meeting, 45 percent of voting shareholders, including some major pension funds, withheld support for Eisner's re-election to the board.
Disney shares closed Thursday at $22.86. They began the year at $23.33. (Reporting by Jonathan Stempel in New York, Peter Henderson in Los Angeles and Adam Pasick in London)
CEO Eisner to Step Down in Sept 2006 -WSJ
32 minutes ago
NEW YORK (Reuters) - Michael Eisner plans to step down as Walt Disney Co.'s chief executive when his contract expires in September 2006, the Wall Street Journal said on Friday.
The decision signals the end of the 62-year-old Eisner's two-decade reign at the helm of the Burbank, California-based company. Eisner has presided over a vast expansion of one of the world's best-known brands, whose businesses range from theme parks to films to the ABC television network.
It also comes six months after Eisner, who became chief executive in 1984, narrowly survived a tumultuous battle led by dissident shareholders Stanley Gold and Roy Disney, a nephew of founder Walt Disney, to oust him from Disney leadership. Eisner was stripped of his role as Disney chairman.
"It will probably be a positive because of the turmoil, and the friction between him and the board," said Steve Previs, an analyst with Jefferies International in London.
Disney did not immediately return calls in the United States and Europe for comment.
In an interview with the newspaper, Eisner said Disney's recent crises played no role in his decision to step down.
He said the decision was "not asked for, not motivated by current circumstances at all," adding that with Disney on an upswing, "this was the time to give the board two years notice, so that there will be a comfortable period of succession."
Last month, Disney said profit for its fiscal third quarter ended June 30 rose 20 percent to $604 million, or 29 cents per share, on revenue of $7.5 billion.
The timing of Eisner's exit is expected to be officially announced later on Friday, the newspaper said. It is unclear whether Disney's board would have offered Eisner a new contract if he wanted one, it said, citing unnamed people close to the situation.
IGER PREFERRED SUCCESSOR
In an interview published on Sunday in the Los Angeles Times, Eisner said Disney President Robert Iger was his "preferred choice" to succeed him.
Iger, a veteran broadcasting executive, told the newspaper he was interested in the job.
"There are quite a few good candidates for the job, both inside and outside the company," said Previs at Jefferies International. "(Eisner) has said he prefers Iger, but I don't think that will have too much weight because of his battles with the board."
The CEO search, to be led by Chairman George Mitchell, is likely to include many candidates, the Journal said, citing unnamed people close to the company.
It said these might include such former Disney executives as eBay Inc. CEO Meg Whitman, Gap Inc. CEO Paul Pressler, News Corp. Chief Operating Officer Peter Chernin, and Jeff Bewkes, who chairs Time Warner Inc.'s entertainment and networks group.
Whitman has said she will remain eBay's CEO until at least 2006. Gold has said Apple Computer Inc. CEO Steve Jobs (news - web sites) might also be a strong candidate.
Eisner's planned departure may make it more difficult for opponents to oust him, but Roy Disney's group has signaled it is likely to campaign to elect a dissident slate of directors.
At Disney's March 3 annual meeting, 45 percent of voting shareholders, including some major pension funds, withheld support for Eisner's re-election to the board.
Disney shares closed Thursday at $22.86. They began the year at $23.33. (Reporting by Jonathan Stempel in New York, Peter Henderson in Los Angeles and Adam Pasick in London)
I was not referring to his position exactly. Just that most Disney fans would like to see him go much quicker.
