Iger to take over as CEO of Disney on 9/30/05!

[crazy4wdw]

Iger to succeed Eisner as Disney CEO

Will take over Sept. 30; eBay’s Whitman ends bid for top job The Associated Press. Updated: 2:39 p.m. ET March 13, 2005LOS ANGELES - The Walt Disney Co. said Sunday its president, Robert Iger, will succeed Michael Eisner as chief executive after another top contender for the job dropped out of the running.

The company said Iger was unanimously elected by the board and will take charge Sept. 30. Eisner will step down on that day, a year earlier than he had previously announced, the company said.

“Bob is an experienced, talented and visionary leader who has made crucial and substantial contributions toward Disney’s strong performance,” Disney board chairman George Nitchell said in a statement. “On behalf of the entire Board, I want to express how excited we are at the prospect of Bob leading this extraordinary company and talented management team to new levels of financial and creative success in the years ahead.”

EBay Inc. Chief Executive Meg Whitman, who was competing with Iger for the CEO slot, withdrew her application on Friday after interviewing with the Disney board earlier in the week, Henry Gomez, spokesman, told The Associated Press on Sunday.

“She decided to stay at eBay,” Gomez said. “After considering it during the week, she decided she wanted to stay at eBay.”

Whitman stays put
Whitman had asked for a quick decision and dropped out when she didn’t get one, according to the Los Angeles Times and The Wall Street Journal. The executive, who has been EBay’s CEO since 1998, likes her job there and reportedly didn’t want the Disney application to become a distraction during a drawn-out selection process, the Los Angeles Times reported.

Whitman was senior vice president of marketing for Disney before leaving in 1992 to work for the Stride Rite Corp.

Her withdrawal doesn’t necessarily mean the job will go to Iger by default, as Disney officials could still seek other candidates as part of an effort to blunt criticism they didn’t look hard enough outside the company for Eisner’s replacement.

Eisner, who has been CEO since 1984, announced in September he would retire when his contract expires next year.

Candidates hard to find
Disney officials have said they plan to choose Eisner’s successor by June and that Iger, along with candidates from outside the company, would be considered.

Iger, 54, has been seen as the leading contender.

The Los Angeles Times cited unnamed sources as saying that Disney has had trouble attracting other candidates, in part because of concerns about the role Eisner is playing in the selection. Eisner supports Iger, who has been his No. 2 since 2000.

Dissident ex-Disney board members Roy E. Disney and Stanley Gold, who lobbied unsuccessfully for Eisner’s ouster last year, complained recently that allowing Eisner to take part in the selection process was making a mockery of the search for a new CEO.

 

[DVCconvert]

Now it's official:

Press Release Source: The Walt Disney Company


Robert A. Iger Named Chief Executive Officer of the Walt Disney Company
Sunday March 13, 2:44 pm ET


BURBANK, Calif.--(BUSINESS WIRE)--March 13, 2005--The Walt Disney Company (NYSEIS - News) Board of Directors announced today that Robert A. Iger has been unanimously elected Chief Executive Officer effective September 30, 2005. He will succeed Michael D. Eisner, current CEO, who announced his intention to retire in a letter to the Board last year dated September 9, and will step down as CEO on September 30, 2005.
ADVERTISEMENT


"After a lengthy, thorough and professional selection process, comparing both internal and external candidates against our criteria for CEO, I am pleased to announce the decision of the Walt Disney Board of Directors to select Robert Iger as the company's next chief executive officer," said Sen. George J. Mitchell, chairman of The Walt Disney Company Board of Directors. "Bob is an experienced, talented and visionary leader who has made crucial and substantial contributions toward Disney's strong performance. On behalf of the entire Board, I want to express how excited we are at the prospect of Bob leading this extraordinary company and talented management team to new levels of financial and creative success in the years ahead."

"It is truly an honor to be entrusted with the responsibility of guiding this great company that occupies such an important place in the hearts and minds of millions the world over toward a very bright future," said Iger. "It's also an honor to work with our incredibly talented and dedicated worldwide team. I feel all the more privileged to succeed Michael, whose tremendous 20-year leadership and enormous accomplishments have built this company into the world's preeminent leader in family entertainment."

"It is with a considerable amount of satisfaction and even pride that I approach the end of my term as CEO of this company," said Michael D. Eisner, former chairman and chief executive officer of The Walt Disney Company. "By every financial and creative measure, Disney is performing at its peak. I have enjoyed virtually every moment of my tenure and want to express my appreciation to the phenomenal colleagues with whom I have been privileged to work. I believe Disney is now poised for its brightest days in the years ahead under the able and insightful leadership of Bob, who has not only the qualities to succeed, but also has a keen sense of the Disney brand and how to maintain its leadership position and grow it on a worldwide scale."

The election of Mr. Iger culminates a lengthy and detailed CEO selection process that started formally when the Disney Board announced on September 21, 2004 that it would, "engage in a thorough, careful, and reasoned process to select as the next CEO the best person for the company, its shareholders, employees, customers, and for the many millions of others who care so much about The Walt Disney Company. The Board is keenly aware of the special place our company holds in the hearts of people all over the world and the importance of its responsibility in choosing a CEO." The Board also made known that day its intention to "complete the process and announce a successor as soon as possible, with an expected date of completion of June 2005."

Directors selected the executive search firm of Heidrick & Struggles in October 2004 in order to assist with the CEO selection process.

"The search and the process for considering potential candidates was thorough and exhaustive and met the most rigorous standards," said Gerard Roche, senior chairman, Heidrick & Struggles.

If he surpasses my expectations, I'll be happy. Time will tell.

 

[gapere]

Wow this came as a big surprise....

 

[Plus4206]

Anyone care to speculate as to why ME is stepping down a year early ?

 

[gapere]

Anyone care to speculate as to why ME is stepping down a year early ?

It's a corporate thing I believe. I read an article somewhere that stated the outgoing chief executive leaves soon after the new one is named regardless of time left on contract so as to not leave the incumbent waiting in the wings too long. My guess is that it would erode ME's leadership abilities since everyone knows there will be a new boss with a possible change in initiatives once they take over (doubtful as that may seem).

 

[manning]

You know what kissing at Disney is still alive and well at Disney.

I hope they lose that lawsuit in Delaware. Then maybe the directors can be sued and held accountable.

 

[wdw4us2]

How sad.

 

[mrsR123]

My guess is that it would erode ME's leadership abilities since everyone knows there will be a new boss with a possible change in initiatives once they take over (doubtful as that may seem).

If there were any hope of changes, there would not have been an announcement now. Or a hiring of this candidate.

 

[macs4us]

Let's make the person who was in charge of one of the divisions that was siphoning money from the parks to stay afloat the new CEO!!! I am sure the parks will benefit from that!!! How long do they think the parks can keep the rest of the company afloat?

What really made me sad was Mitchell saying "If you are a major investor and the company has produced a 60 percent increase in earnings, has just increased its dividend 14 percent, has record cash flow and a substantial increase in return of invested capital, you don't encourage major change." Ahhhhh, yes the bottom line at any cost, but they want the money NOW!!! It will bite them in the rear someday, but the current board will be in their graves by that time so why would they care???

 

[CaipiraBob]

I hardly think it's good news.

Disney needed a change in management philosophy. They didn't need another Eisner cronie like Iger placed in charge.

Look for more of the same at Disney.

Oh, here's what Roy Disney has to say:

"While it has taken three years to reach this point, our efforts to remove Michael Eisner as CEO of the Walt Disney Company have finally succeeded. Even the Disney Board, which has proven unresponsive to its shareholders, recognized that it had to take this action after our campaign which resulted in a resounding 45% No Confidence Vote on Michael Eisner last year.

"Unfortunately, our concerns regarding this Board's process to replace Mr. Eisner were well-founded. We find it incomprehensible that the Board of Directors of Disney failed to find a single external candidate interested in the job and thus handed Bob Iger the job by default. We find it very telling that Mr. Mitchell refused to answer repeated questions about whether the entire Board had interviewed more than one external candidate. The Board has failed in what is clearly one of their most important responsibilities, the selection of the Company's CEO.

"The need for the Walt Disney Company to have a clean break from the prior regime and to change the leadership culture has been glaringly obvious to everyone except this Board. The scathing portrait painted by James Stewart in DisneyWar has been widely reported without serious challenge or contradiction. A Board that is so deaf and insular cannot be entrusted to provide independent stewardship to this valuable, unique institution.

"The selection of Bob Iger is yet another example of this Board's breach of faith. The pledge made by Chairman Mitchell to conduct a bona fide search was a ruse to avoid a contest at the 2005 annual meeting. Mr. Mitchell's approach to good governance is no better than a carny at the fair, enticing words but in the end the game is rigged. Disney Shareholders have been conned and their trust in this Board abused.

"Shareholders should seriously consider replacing this Board and starting anew."

Source: Roy E. Disney and Stanley P. Gold

 

[crusader]

Anyone care to speculate as to why ME is stepping down a year early ?

simple. It's dignified and will garner respect. Smart move.

 

[DancingBear]

While this announcement comes as a surprise, I just want to point out that (1) when Eisner first announced his retirement with 2 years' lead time, everyone said that was way too much time, and (2) unlike some of the most dire predictions, he is leaving the board and not seeking the chairmanship.

It will be interesting to see who replaces Mitchell as chairman.

 

[WDWHound]

This quote from a CNN article caught my eye.

"On Sunday, Eisner said he would leave the CEO post this September and quit as a Disney director next year."

Looks like Eisner quit as CEO, but he plans to stick around on the board for a while afterwards. This doesn't seem normal to me.

 

[bags6490]

I believe that fmr. Sen. Mitchell is still chairman but has said that he will not stand for re-election when his term is up in 2006.

I dont think that this "move" by the Disney's Board will change any of the problems that Eisner created.

We here on the boards wish for a CEO who will return the parks and Disney animation back to the way most of us remember them. Until the board determines that the good name of the Disney brand is more important then 20% return every year we will be stuck with Eisner like leadership.

I still say that Roy is the only man for the job. Yes he is gettin up there in age, and has never wanted the job, but I feel it is now his DUTY to take the company back for all of us stockholders that care more about the core Disney products, Theme parks and animation(including Pixar), than all this other stuff Eisner has burdened us with.

I hope Iger's term will be short lived and full of no suprises.

Go Roy Go!!!!!

 

[DancingBear]

Looks like Eisner quit as CEO, but he plans to stick around on the board for a while afterwards. This doesn't seem normal to me.

With his hand-picked successor in charge, it doesn't strike me as unusual that Eisner would serve out his contract time as a director.

 

[Plus4206]

I don't know enough about Iger to make an informed opinion as to what will happen after he becomes CEO. What bothers me is that it seems he is being found "guilty" by association. Iger (BI) is being blamed for the failures at ABC, but do we really know how much of that was his fault & how much was from ME's micromanaging.

I guess my position is to wait and see.

 

[WDWHound]

I am willing to give the guy a chance, but his record at ABC is not impressive. Still, as you say, once Eisner is gone (assuming he ever leaves) he can stop living in his shadopws and implement his own ideas. Perhaps then I will be plesantly surprised.

I do think they would have done better looking outside the company. Steve Jobs would have been my choice, but I doubt he would have taken the job.

 

[PatrickBDunlap]

You know, I got banned from Intercot a few years back because they said that I was too negitive and that I was always arguing with anyone about how bad managment was at Disney and how they were sucking the parks dry due to their poor media buys.

Well, kind of funny that here we are today and even the management at Intercot were all geeked about Roy E.D. ranting about ME and the board.

I guess I was just ahead of my time.

 

[raidermatt]

simple. It's dignified and will garner respect. Smart move.

Given your past comments about the inner workings of Hollywood and Eisner in particular, you of all people should know that there is no way its that simple.

I am willing to give the guy a chance...

I guess we don't have much of a choice, do we?

I do think they would have done better looking outside the company.

Personally, I think they had a responsibility to do a better job of looking for candidates, but really, we all knew where this was going.

 

[Plus4206]

No, but we do have the choice when it comes to what we post about him. I'd love to be able to post that I'm confident BI ( actually I like Larry's MiniME, but that's a little to judgemental for me right now ) will bring back the good ol' days, but I can't. I'd hate to post I'm certain BI is "same as the old boss" , but I can't do that either. The fairest thing we can do is "wait and see" .