Please help me understand

[mobmilli]

Bare with me.

What does ME being stripped of Chairman actually mean and his staying CEO? I've only joined the Disney ropes a few years ago and business lingo and upper positions is not my speciality.

Being a DSCM myself I'm sure whatever changes are made may not have much affect on us, unless this new change of roles will keep us around and not be sold afterall.

Thanks in advance

 

[KNWVIKING]

With Mitchell - an ME chosen board member - appointed as chairman - by ME's appointed board- there is virtually nothing different.

However, apparently Mitchell is an interum chairman. If a truely independant chairman is eventually named, someone with power who is not just a figurehead, then there could be some meaningfull changes at the top.

RE:"Bare with me."

Is this an invitation to a unique Dis meet ??? Hope the weathers warm.

 

[Luv2Roam]

In the current Disney situation it is very doubtful there is any difference at all. Which is why so many are upset with the outcome. (Not to mention the high NO vote for Mitchell.)

Anyone please correct me if I am wrong --

The CEO is the top person, who is responsible for top decisions. The head of the company.
Like the wording -- He is the Chief Executive Officer

The board chair is the head of the board, and represents the views and interests of the shareholders. They are the spokeperson (officer) for the shareholders. They maintain the voice and interests of the shareholders.


Working at the companies I have, I have often found board members are on each others boards. Always seemed to be true inbreding to me.
Often a CEO of one company was also on the board for multiple companys.
And those CEOs in turn were on the same boards for other companys.
It often seemed like the same people were on the same boards of various companies. And each getting a pretty big chunk of cash just for having an occasional meeting.
They would make $ for a short meeting for what it takes most people to earn in 1 - 2 months.
I always thought board members should disclose what other boards they are on.
Often seemed to me like a bunch of golfing buddies getting together to earn some jack.
I am sure there was more to it. After all, they are working for the shareholders.

 

[FantasticDisFamily]

In THEORY the board members are the governance or stockholders oversight providing guidance in terms of mission and vision for the senior management team.

Notice the emphasis on the word theory. This is certainly one situation in which the board is not doing that. Rather they have distinctly NOT followed the wishes of the stockholders.

A 40% no vote given the magnitude of shares owned by "certain" individuals is a virtual unanimous no from the majority.

Given the level of no votes, 24% I believe, for Mitchell the rest of the board should not only NOT have appointed him chair - interim or otherwise - they should have insisted upon his resignation. And any intelligent business person with the good of the company in mind would not have to have been asked.


DUH! Of course, we're making some serious assumptions here - none of which happen to be in play. One of those instances where theory and reality are so far apart that they don't even appear to be in the same universe.

Unfotunately as you state you are a Disney Store CM I would not be terribly hopeful if I were in your place. How is your resume looking?

Deb

 

[Bstanley]

What does ME being stripped of Chairman actually mean and his staying CEO?

The CEO (Chief Executive Officer) of a company is the person where the buck stops. They get to make all the decisions they want to.

In the US a corporate board is an advisory committee made up of individuals from inside and outside the company that - in theory - provide guiidance to the CEO (and generally other senior management) on any big ticket decisions. HOWEVER - the CEO does NOT have to do what the board recommends. But the board is not totally powerless.

The power that a board has over a CEO is that they hire and fire them. Anyone that directly reports to the board (sometimes other people in a company other than the CEO report directly to the board) can be dismissed. Also the board negotiates the contract between the company and the CEO (and others sometimes). So if a CEO doesn't do what the board recommends they might just fire them!

The Big ME has been the Chairman and CEO of Disney for almost 20 years. His contract actually states that he will be the Chairman of the Board. His losing the Chairman position is substantial.

First it means that he agreed to it - otherwise it couldn't have happened until his contract was up in 2006.

Second - it means that he is no longer the 'Head' of the board that might fire him.

and

Third - it means that the board acted against him - a first.

It doesn't mean that he still isn't the guy making all the decisions at Disney right now, and for now the board is still full of his 'supporters'.

But there has been a sea-change and it hasn't finished yet.