Roy E. Disney RESIGNS!

[CRSNDSNY]

The link:
http://news.com.com/2100-1026_3-5112210.html


The story:
The vice chairman of the Walt Disney Co., Roy E. Disney, resigned from the board of directors Sunday, citing his "serious differences of opinion" with the chairman, Michael D. Eisner, "about the direction and style of management in the company."

Disney, the nephew of Walt Disney, also called for Eisner's resignation. In addition, Disney stepped down from his position as chairman of the feature animation division.

The resignation lays bare a sharp conflict in an entertainment and media company that has called its theme parks "the happiest place on earth."

"You well know that you and I have had serious differences of opinion about the direction and style of management in the company in recent years," Disney wrote to Eisner. "For whatever reason, you have driven a wedge between me and those I work with even to the extent of requiring some of my associates to report my conversations and activities to you. I find this intolerable."

Disney noted that the nominating committee had excluded him from the slate up for election to the board of the publicly held company, "effectively muzzling my voice on the board."

Just last year in a boardroom power play, Eisner prevailed over his chief critic and fellow board member, Stanley P. Gold, investment adviser to the family of Roy E. Disney.

After that episode, the board was reconfigured, in a move that was said to reduce the influence of Eisner's critics.

Disney acknowledged that he fell into the category of critic.

"Michael, I believe your conduct has resulted from my clear and unambiguous statements to you and the board of directors that after 19 years at the helm you are no longer the best person to run the Walt Disney Company," Disney wrote, adding that in the past 10 years the company "has lost its focus, its creative energy, and its heritage."

The Disney company is listed on the New York Stock Exchange. Shares closed at $23.09 on Friday.

Entire contents, Copyright © 2003 The New York Times. All rights reserved.

 

[jgalecpa]

Thanks for the post.

This is very sad.

Roy is the last real connection to Walt, in most peoples eyes.

While no one doubts that Eisner regained the lustre Disney had lost. He took the studio that produced "Tron" and turned out a succession of hits including Mermaid, Beauty & The Beast, the Alladan series and of course the Lion King.

He is responsible for overseeing Disney' foray into Broadway, and as a result the cleaning up of the whole Times Square area (I for one doesn't think the "Disneyfication " of TS is a bad thing at all).

Would DCL even exist without him?

HOWEVER, he has been justly criticized in my opinion, by many in the financial world (myself included) for stocking the Board of directors with people beholden to him.

He has yet to set up a plan of succession.

The financial results of buying ABC are yet to be justified.

When Roy leaves, is it really Disney anymore?

I wonder.

My two cents, for those that bothered to read it all.

 

[gonna go cruising]

Very well said, Jim.

I tend to wonder now if it is the almighty dollar that Eisner wants more than the "Disneyfication ideals".

It makes me also very sad that there is no longer a Disney working hand in hand with them all. I am sure it was a decision he thought long and hard about, and in the end, we see the decision he made.

 

[jgalecpa]

Gonna Go Cruisin:

I tend to wonder now if it is the almighty dollar that Eisner wants ...".

He's apparently not very good at that, As dis stock is only about half what it was FIVE years ago (23 vs 45)

Jim

 

[jilljill]

Jim, I have to agree with everything you have said. I'm anxious to hear what Eisner has to say about all this. This is a sad day for the company and for the Disney family, as well as the stockholders.

 

[CRSNDSNY]

Originally posted by jgalecpa
When Roy leaves, is it really Disney anymore?

I wonder.

Good question. I guess only time will tell. It is very sad.

 

[goodfaerie]

This makes me very sad. While I can appreciate Eisner's corporate accomplishments, I simply cannot understand a world in which the last of the Disney legacy is forced into a decision to opt out of the company that bears his family name. Sigh.

GF

 

[axsimpson]

How sad.
Although it is true, Eisner did pull the company out of serious trouble, he is the perfect example of corporate greed.
While he is making millions a year, the people who work in the parks barely make enough money to get by.
What a shame. Too bad the title did not read Michael Eisner resigns!

 

[Lisa F]

Here is a copy of the full letter. How sad for the Disney CO to lose Roy, but I have to say "you go, Roy!" for the "official" acknowledgement of what many of Disney's fans have said for years. This is a copy of text from the following link:

http://www.miceage.com/allutz/al113003a.htm



Mr. Michael D. Eisner, Chairman
The Walt Disney Company
500 South Buena Vista Street
Burbank, CA 91521

Dear Michael:

It is with deep sadness and regret that I send you this letter of resignation from the Walt Disney Company, both as Chairman of the Feature Animation Division and as Vice Chairman of the Board of Directors.

You well know that you and I have had serious differences of opinion about the direction and style of management in the Company in recent years. For whatever reason, you have driven a wedge between me and those I work with even to the extent of requiring some of my associates to report my conversations and activities back to you. I find this intolerable.

Finally, you discussed with the Nominating Committee of the Board of Directors its decision to leave my name off the slate of directors to be elected in the coming year, effectively muzzling my voice on the board -- much as you did with Andrea Van de Kamp last year.

Michael, I believe your conduct has resulted from my clear and unambiguous statements to you and to the Board of Directors that after 19 years at the helm you are no longer the best person to run the Walt Disney Company. You had a very successful first 10-plus years at the company in partnership with Frank Wells, for which I salute you. But, since Frank's untimely death in 1994m, the Company has lost its focus, its creative energy, and its heritage.

As I have said, and as Stanley Gold has documented in letters to you and other members of the Board, this Company, under your leadership has failed during the last seven years in many ways:

1. The failure to bring back ABC Prime Time from the ratings abyss it has been in for years and your inability to program successfully the ABC Family Channel. Both of these failures have had, and I believe will continue to have, significant adverse impact on shareholder value.

2. Your consistent micro-management of everyone around you with the resulting loss of morale throughout the Company.

3. The timidity of your investments in our theme park business. At Disney's California Adventure, Paris and now in Hong Kong, you have tried to build parks "on the cheap" and they show it and the attendance figures reflect it.

4. The perception by all of our stakeholders -- consumers, investors, employees, distributors and suppliers -- that the company is rapacious, soul-less, and always looking for the "quick buck" rather than long-term value which is leading to a loss of public trust.

5. The creative brain drain of the last several years, which is real and continuing, and damages our Company with the loss of every talented employee.

6. Your failure to establish and build constructive relationships with creative partners, especially Pixar, Miramax, and the cable companies distributing our products.

7. Your consistent refusal to establish a clear succession plan.

In conclusion, Michael, it is my sincere belief that it is you who should be leaving and not me. Accordingly, I once again call for your resignation or retirement. The Walt Disney Company deserves fresh, energetic leadership at this challenging time in its history just as it did in 1984 when I headed a restructuring which resulted in your recruitment to the Company.

I have and will always have an enormous allegiance and respect for this Company, founded by my uncle, Walt, and father, Roy, and to our faithful employees and loyal stockholders. I don't know if you and and other directors can comprehend how painful it is for me and the extended Disney family to arrive at this decision.

In accordance with Item 6 of Form S-K and Item 7 of Schedule 14A, I request that you disclose this letter and that you file a copy of this letter as an exhibit to a Company Form 8-K.

With sincere regret,

(signed) Roy E. Disney

cc: Board of Directors

 

[gonna go cruising]

Originally posted by jgalecpa

... As dis stock is only about half what it was FIVE years ago (23 vs 45)

Jim

Very sad that it has plummeted that much in five years. I really feel for the Disney family right now, having to let go altogether due to these circumstances. Only time will tell.

 

[MarkRG]

And the spin doctoring already is happening. Bloomberg this morning is reporting it as that the board is enforcing the retirement age and that Roy is a known critic of Eisner. No mention whatsoever of the letter or that Roy left first. :/

 

[tfc3rid]

This seems to be the tip of the iceberg. What happens next may be spinning off portions of the Company, selling assets to other corporations to operate...etc...
Who knows who will be running the DCL or DVC in a few years...

 

[jilljill]

Originally posted by tfc3rid
This seems to be the tip of the iceberg. What happens next may be spinning off portions of the Company, selling assets to other corporations to operate...etc...
Who knows who will be running the DCL or DVC in a few years...

In a few years.....who knows who will be running a division next year. Look at the Disney Stores, no one knows what will happen to them next year. Will they be sold as a whole or some closed and the rest sold, or will the company keep some of the stores and close others?!? At this point it's a big wait and see game.

 

[jrabbit]

One of the articles I read stated that Disney has been going through a "brain drain" over the past several years. You know executives going to other companies. One of the people mentioned was Paul Pressler. Sorry, he's not a brain, and he was a drain on the company. He was part of the problem at Disney (hey people don't want rides at theme parks, they want to buy overpriced plastic junk!! Don't give them quality, give them junk at quality prices. (OK where is that "soapbox" "emotion smile" that I need to use)

Hopefully Roy Disney and Ron Gold will pull out another miracle like they did in 1984 when they brought in Eisner and Frank Wells!!!

Looking back one of two things was the reality: Wells was the real brains behind the company or Wells was a strong enough person/personality that could keep Eisner in check.

Until Roy reemerges at Disney, here are a few hundred votes against any board resolutions and board members.

 

[jgalecpa]

Well Said, JRabbit.

Frank Wells was truly a force.

I don't think Eisner's been the same without him.

One of the best statements I've seen today is that the acquisition of ABC exposed Disney to "Advertising Risk", ie an industry whose fortunes rise and fall based on Advertising rates/levels.

Advertising risk shows up two ways, (1) if all advertising levels decline (as in a recession) then everyone dependent on advertising suffers, and (2) if your media outlet is underperforming (as in you are ranked low in Nielsens without a string a major hits in years) then you suffer.

If you get hit with a double whammy of both, then losses can mount exponentially.

Spin off ABC!

My 2/100ths of a Dollar, for those who care.

Jim

 

[alexandrew]

Roy sure didnt hold back.....i guess there won't be a Michael Eisner Suite on the Magic any time soon....Personally, i think Mike's done a great job....albeit the last few years have been challenging....

 

[ThreeCircles]

Eisner did very well with the Walt Disney Company during the first ten years of his tenure. He increased marketing of Disney related products, helped push the Walt Disney World Resort into a four park establishment, and, of course, gave us Disney Cruise Line.

With that said, he has also made some very (*VERY*) poor decisions in my opinion.

One need look no further than the 2-bit, direct-to-VHS, "sequels" he has made to almost all of Disney's classic Animated Features. While these may have produced a quick and cheap cash flow for the company, they have done little on the artistic fronts. How many people now equate these cheap knock-offs to Disney Features? Too many, I would think.

Eisner needs to go. The company needs new blood and energy. He has stagnated and the company needs new leadership in order to grow.

 

[CRSNDSNY]

Originally posted by ThreeCircles
One need look no further than the 2-bit, direct-to-VHS, "sequels" he has made to almost all of Disney's classic Animated Features. While these may have produced a quick and cheap cash flow for the company, they have done little on the artistic fronts. How many people now equate these cheap knock-offs to Disney Features? Too many, I would think.

Oh yeah. I have one word: TARZAN

 

[inkkognito]

I won't even go into my opinion of Eisner, but I do have a comment to make from a different slant.
Now that Roy has resgined, will that affect the intro. to the Golden Mickeys, when he links up via "satellite" from the Disney offices in CA with Ensign Benson to give her encouragement? That is my favorite part of the show because of the wonderful collage of old photos and footage of Walt and the little history lesson. One of our tablemates said that it brought tears to her eyes. I agree with the previous poster who said that Roy is that last direct link left to Walt.
Barb
Visit the Platinum Castaway Club at: www.castawayclub.com

 

[wltdsnyfan]

I hope something is done fast. I sure do not want to see Disney crumble. I love that place to much It is a place you can go and leave reality (at least while you are there). Maybe Michael's wife needs to step in.