NEWS: Roy drops lawsuit, becomes a director and Iger unopposed

[dcentity2000]

This just in...

LOS ANGELES -- Walt Disney Co. and two former directors who have waged a bitter two-year fight have agreed to a truce.

The agreement includes dropping of a contentious shareholder lawsuit challenging the selection of the company's new chief executive officer.

The company said Friday it has named former director Roy E. Disney a director emeritus and a consultant.

In exchange for this, Roy Disney and ex-board member Stanley Gold have agreed not to put forth a challenge slate of directors or submit shareholder resolutions for the next five years. The two also pledged to back the leadership of Robert Iger, who succeeds longtime Chief Executive Michael Eisner in September.

In a brief statement Friday the company reaffirmed its commitment to rotate members of the board's committees as currently required by the company's corporate governance guidelines.

"In putting aside their differences, the company noted Mr. Disney's longtime devotion to the company and welcomed the re-establishment of a relationship with him and his family," the statement said.

Source: Chicago Tribune



Rich::

 

[ohanafamily]

Here is the e-mail I got from Save Disney.com. I would like to know what else there is; I always think of emeritus as retired with no real power

[font=Times New Roman, Times]Roy Disney and Walt Disney Co. Resolve Differences[/font]

[font=Verdana, Helvetica]JOINT STATEMENT FROM THE WALT DISNEY COMPANY AND ROY E. DISNEY AND STANLEY P. GOLD[/font]
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[font=Verdana, Helvetica]BURBANK, Calif. (July 8, 2005) -- The Walt Disney Company, Roy E. Disney and Stanley P. Gold announced today that they have agreed to put aside the differences that have characterized their relationship over the past several years. Messrs. Disney and Gold have agreed not to run a rival slate of directors or submit shareholder resolutions for the next five years. Messrs. Disney and Gold have also agreed to dismiss all their pending lawsuits against the Company. In reestablishing ties with him and his family, the Company has named Roy E. Disney Director Emeritus and a consultant. The Company also reaffirmed its commitment to the rotation of committee members and chairpersons on its Board committees as currently required by the Company's Corporate Governance Guidelines. In putting aside their differences, the Company noted Mr. Disney's long time devotion to the Company and welcomed the reestablishment of a relationship with him and his family. Messrs. Disney and Gold expressed confidence in Mr. Iger's leadership, and as Mr. Eisner retires after 21 years with the Company, they acknowledged his contribution to the Company over the years.

[/font]
[font=Verdana, Helvetica][/font]

 

[peter11435]

retired with no real power

Yep, thats the point.

 

[ohanafamily]

Hey, Peter, I just noticed your join date; you have been dis-ing a whole year!!! congrats. BTW, it is a 5 year limitation, and then we may see some more action...

 

[bicker]

I believe there is a legal limit to how long such a restriction can be applied to a shareholder, even if taken on voluntarily. I'd interpret a 5 year restriction for a 75 year old shareholder to be pretty much an agreement to drop his objections altogether, and allow the company to move on unimpeded. This is really good news for the company IMHO and will allow Iger to lead without this noise interfering with his strategies.

I think it was a really nice gesture to offer Roy Disney the Emeritus title.

 

[JonetteA]

I disagree. I think that this is a disaster. I wish they had not given up the fight. I think that behind the scenes there are changes that we are not privy to. However, I would rather see Roy back in the animation department. In my mind, Roy was sticking up for the old company and values. I will withhold my judgement of Iger until I can see what he can do, however, Eisner in the past few years has been nothing IMHO other than a disaster for the financial standing of Disney, not to mention creative. I won't get into my thoughts on the creative disappointments...

 

[mitros]

I agree with you wholeheartedley, and, speaking of Ei$ner, I am also worried that he will NOT leave in September, as had been suggested, and that Iger, who is actually his "buddy", may keep him around as an "advisor" {an advisor, yea, right! } Can I get a big Ka-ching! for Ei$ners wallet?

 

[bicker]

I believe Eisner will stay on the Board of Directors. He'll almost surely be a major advisor to Iger. That was a significant concern of Roy Disney's and Stanley Gold's. That's one of the reasons why it was so beneficial to have this issue resolved before Iger's term began.

 

[ohanafamily]

Maybe that is what Disney got in return when he gave up... the promise that Ei$ner will become Emeritus as well.....

 

[bicker]

Eisner announced his retirement plans almost a year ago.

I think analysts are uniformly amazed at Roy Disney's and Stanely Gold's reversal.

From the LA Times: "I'm kind of at a loss to explain this given the strong nature of the rhetoric concerning Bob Iger in the past," said Patrick McGurn, executive vice president of Institutional Shareholder Services, which advises large stockholders. "It's as though they've gone from 60 miles per hour to zero in 4.2 seconds." According to three sources with knowledge of the situation, Iger spoke to Disney and Gold on several occasions in an effort to broker a peace. While Iger was looking to end the feud, one of the sources said, Roy Disney had grown weary of the fight and was seeking a graceful resolution that would allow him some role — if only symbolic — at the company that bears his family name.

 

[manning]

Just a wild speculation on my part. Could Roy have health issues?

One of his greatest enjoyments is sail boat racing. I recently saw an announcement that he is giving that up.

 

[mitros]

Well, Roy is approaching 80. Maybe he is just tired.

 

[crusader]

Maybe, he just wanted back in afterall.

This party's been over.

 

[ohanafamily]

We can speculate all we want, but other than Disney, Iger, Ei$ner, and Gold (with possibly a lawyer or two who drew up a deal), we may never know the deal (unless of course someone breaks it, then we will have a show...

Oh well, Jim Hill even agreed that Save Disney did some good...