Stockholder's Meeting - Just Got Back

[larworth]

Wow, what a marathon meeting. Eisner kicked things off around 10:00 and he didn't adjourn the meeting until 3:30. No break for lunch, the bathroom, or from stupid questions. A few quick reflections and let me know if you have any specific questions.


Most of the time was filled with presentations by the different divisional heads. If I hear "let me show you a short video..." one more time.....

Cook showed what must have been about 45 minutes of back to back trailers. I think he hit on every movie they are going to release over the next 3 years. Another 6 or so presentations each at least 1/2 hour long. They were pulling out all stops to show all the great things they have in the works, and frankly I think they wanted to wear people out. At least 1/3 of the packed house had left by the end.

I don't think we heard anything new about the parks in Jay's presentation. His themes were the same ones we have been hearing 1. Entertainment (shows and rides), 2. CRM, 3. Magical gatherings marketing, and 4. Geographic expansion (HKong).

Roy and Stan (managed to get a few seconds with each before the autograph hounds descended) had about 20 minutes to address the audience on why ME should go. I thought they both did an Excellent job and hope someone posts a transcript of their speech. I'd love to hear it again. Roy's comments on "Disney branding" were very well received.

I was surprised at how well behaved the crowd was (no boo's). There was a contingent of people (15%?) that I'm guessing was from the local ABC affiliate that would clap for ME on cue. The vocal part of the Roy/Stan crowd looked to be about 40%. One lady did have to be escorted out as she tried to monopolize the first Q&A session. She was a piece of work.

ME was having trouble with his voice (horse) throughout. I actually thought he handled the situation pretty well. Never looked defensive, tried to interject humor as he usually does to disarm the question, and just kept stressing that the board believes Roy's points are just not accurate.

The questions from the audience were weird/poor. The best was from a longtime employee that told ME that "it was really time for him to do the right thing". ME's response was the he believed he was doing the right thing by continuing to do his best to grow the company. Doesn't look like he is ready to concede.

At the end ME said they would take about 20 minutes of questions and than release the vote totals. After about 20 minutes someone jump on the microphone and called for the meeting to be adjourned. A quick second came from the crowd and ME called the meeting over and tried to sprint off stage. The crowd began shouting about the vote. I'm not sure if he really forgot or was trying to pull a fast one? However, he made a joke and than had someone come up and read the totals. The 3 sharholder issues were soundly defeated, and eveyone on the board got about 95% except Mitchell and ME.

Know if I understood correctly, they only reported the totals as of the end of Tuesday. If they weren't going to include the votes made at the meeting (maybe another 15% outstanding) why did they have to wait until the end to do it? Oh, I guess with a 43% ME NO vote I really do know why.

Any questions?

 

[colleen costello]

Thanks so much for sharing.

 

[wdw4us2]

How lucky you were to be at the meeting. Most of us spent the day in front of the computer listening to the webcast and posting our thoughts as the day went on. This was probably the fastest 34 page thread I've ever seen on the Rumors & News board:

http://www.disboards.com/showthread.php?s=&threadid=520752

Enjoy!

 

[disboo]

larworth, I think you summed the meeting up very well (I just got home, too). The comments from the crowd were generally strange, the presentations were slick, and Eisner held his own very well.

The one point that I thought slid by some people was an early slide about available cash flow or something. (I am not an accountant - not good at the terminology) Basically they pointed out that cash flow was better because of less investent in their assets. To me that means, not putting $$ back into their amusement parks.

 

[anniet]

Thanks larworth-

Any mention of DVC at all? The rumors are flying over on that board....

 

[disboo]

I don't remember anything about DVC.

 

[JimC]

Nice summary. About my take as well. Agree about Roy's quote on branding. It was possibly the best I have ever heard. And he is right -- Disney is a name, not a thing.

Very slick production of neatly presented business leaders reading from tele prompters with great AV support. Lots of talk about creating shareholder value, branding, strategic positioning, cross marketing, efficiency -- the b-school professors would love it.

But very little about getting back to great scripts and stories and deliviering unparalleled guest experiences. I didn't hear Walt's concept of "plussing" even hinted at.

Roy and Stan were able to marshall 43% of the vote against ME in twelve short weeks. That is unprecedented. I don't remember the votes withheld for the other directors. Less, but not insignificant. Now the battle really begins.

 

[zurgswife]

Zurg and I were unable to stay until the end ...had to leave at 2pm....It was a very slick show....and I do mean show....there were so many videos shown I thought I was at Theater Show not a Stockholder meeting....


Larworth great summary....but my favorite part...

No break for lunch, the bathroom, or from stupid questions.

I think the 2 plus hours of the pony show is when Eisner got lunch.....

 

[JudithM]

We attended both the Save Disney meeting yesterday & the annual stockholders meeting today. Larworth, good summary ...

A couple of observations from today's meeting:

* while in line inside the convention center aboyut 7:30 a.m., we were talking to a DL CM; he talked about how he & other DL CM arrived Monday evening & trained yesterday with DL & WDW CMs; I found it sort of rude since standing a few feet away was a TDS CM in costume who was also working the meeting - no mention of TDS CMs at all; there were several TDS CMs working the meeting today;

* the stockholder's invitation specifically said no cameras, yet ... the 75 Mickey stautes were in the area as well as several characters - Mickey, Minnie, Cinderella, Snow White, Donald Duck - & no one was supposed to have a camera; we left our camera in our luggage at the hotel ;

* it was wonderful to see the black & white & the color Mickey Mouse cartoons before the meeting; now why aren't they showing those cartoons on the Disney Channel?

* the front, middle section of the hall was reserved; when several people were walking to those seats with badges turned around so we could no see where they were from, I asked one man & he rudely said they were "employees;" I said "Do you mean CMs?"

* the meeting was way to long to be sitting in those chairs with nothing to eat or drink (ok, I did have a water bottle & some pretzels with me);

* in the beginning the only applause Michael seemed to be getting was from the people in the reserved section - those "employees!" then when Roy & Stanley got up, many stockholders gave them a standing ovation & a loud applause; I saw many people wearing items we received at the Save Disney meeting - buttons, pins, t-shirts.

 

[zurgswife]

* the stockholder's invitation specifically said no cameras, yet ... the 75 Mickey stautes were in the area as well as several characters - Mickey, Minnie, Cinderella, Snow White, Donald Duck - & no one was supposed to have a camera; we left our camera in our luggage at the hotel ;

After realizing I could have taken pictures then checked my camera ...I was also disapointed that I didn't bring it...

 

[gscott8075]

I enjoyed it. The lack of food was a big error. They knew the meeting was going to be longer than normal.

I think ME did a nice job holding his own given all of the attacks. He was clearly being playful about announcing the vote totals. I do not think he was trying to pull a fast one.

Roy was masterful. Gold appears to be a not very nice person. He is a bulldog.

Though I think some changes are necessary, whatever happens, Disney has to stay intact. A Disney with Eisner is better than a Comcast with Disney.

 

[llrain]

ok..reading these 2 paragraphs I see the word RUDE twice
Both in reference to the CM's..or should i say employees
Though these are just one persons feelings I cant help but expand on the rudeness thing because i think that what is really driving Disney down is the workers, Not all of the workers,
but most. I have never worked for Disney, would like to but am tooo far away. This said my feelings stem not only from Disney but the 300 or so employees that I coached, supervised, call monitored in a call center.
My relation? The majority of my peers that I was responsible were people that just wanted to collect a paycheck and didnt want to do work and just complained all the time how much they hated their jobs, yadda..yadda.
What does this have to do with Disney.
On more recent trips there i have seen ALOT of young workers that just seem to not GET IT so to say. Like pour their heart into something that they believe in. They want to get into the CP to say that they did it and dont give it 110% for what they do...where as you can probably attest that they only kind CM's
at the parks/resorts are the older generation where it means something to them not just an easy passing grade pr whatever they get for going to the CP.

Not only do i see it at Disney but every damn time i goto Lowes or Home depot....They dont want to help anyone....I got a huge sigh from a worker at Home depot the other day because he had to help me put together a cabinet package.

To make a long story short....Im not saying ALL ...but the vast majority of the workers, i feel, are bringing disney down...They are a new generation...the generation that followed mine that just seem plain lazy.....and dont wanna werk hard.

So it really doesnt surprise me that these CM's/employees were rude to you...I am truely sorry that they were and Im glad you put them in their place...




* while in line inside the convention center aboyut 7:30 a.m., we were talking to a DL CM; he talked about how he & other DL CM arrived Monday evening & trained yesterday with DL & WDW CMs; I found it sort of <b>rude</b> since standing a few feet away was a TDS CM in costume who was also working the meeting - no mention of TDS CMs at all; there were several TDS CMs working the meeting today;




* the front, middle section of the hall was reserved; when several people were walking to those seats with badges turned around so we could no see where they were from, I asked one man & he rudely said they were "employees;" I said "Do you mean CMs?"

 

[JudithM]

Originally posted by llrain
ok..reading these 2 paragraphs I see the word RUDE twice
Both in reference to the CM's..or should i say employees
Though these are just one persons feelings I cant help but expand on the rudeness thing because i think that what is really driving Disney down is the workers, Not all of the workers,
but most. ... To make a long story short....Im not saying ALL ...but the vast majority of the workers, i feel, are bringing disney down...They are a new generation...the generation that followed mine that just seem plain lazy.....and dont wanna werk hard.

So it really doesnt surprise me that these CM's/employees were rude to you...I am truely sorry that they were and Im glad you put them in their place...


* while in line inside the convention center aboyut 7:30 a.m., we were talking to a DL CM; he talked about how he & other DL CM arrived Monday evening & trained yesterday with DL & WDW CMs; I found it sort of <b>rude</b> since standing a few feet away was a TDS CM in costume who was also working the meeting - no mention of TDS CMs at all; there were several TDS CMs working the meeting today;

* the front, middle section of the hall was reserved; when several people were walking to those seats with badges turned around so we could no see where they were from, I asked one man & he rudely said they were "employees;" I said "Do you mean CMs?"

I understand what you are saying about today's workers/employees/CMs, but I think some of it comes from the top of any work place/company/employer.

One of the points Stanley Gold made early on at the meeting yesterday was the the comapny's focus shifted from Cast Members to the bottom line (the almighty dollar - my phrase, not his)). He also commented that in the future the company needs to be responsive & effective to shareholders, CMs, etc.

 

[llrain]

yes that is another angle of it also...I fully agree with that...
But from personal experiences I had to make that observation..

 

[manning]

Gold appears to be a not very nice person. He is a bulldog.

The business at hand is to get the job done, he is tough.

 

[ShadowWind]

There has always been people in all jobs that are just in it for the paycheck and aren't thrilled about their jobs. Disney used to do an amazing job of taking the bright eyed eager CM who just got there, and drilling into them the Disney tradition, by spending days, rather than hours, bringing them into the Disney experience. It wasn't just a job, it was representing the Disney name, and CM's could take pride in that, a pride that was passed along to the guests.

Nowadays, they are lucky if they get trained hardly at all, but rather, due to the large turnover, are shoved out on stage, and that stage is hot (especially in the summer), long and tedious. I don't know about California or other places, but $6 an hour jobs are pretty much a dime a dozen in Orlando. We used to kid that if you couldn't find a job there, you weren't looking hard enough. If a person does not feel they are serving a higher purpose for Disney (creating the magic), than it's just a really tough job, one that could be found somewhere else, in much better circumstances for that same money. I find that the ones that have that Disney magic after a really long day are the ones that have been there long enough to discover it on their own. But it's a much harder road, when that magic is not instilled in you at the start. It's almost a brainwashing of sorts, but in a good way, that makes the expereince good for both CM and customer.

Don't get me wrong. I have the greatest respect for CM's, who work very hard and it's very hot, and they have to deal with more people than anyone would hope to see, all while keeping a smiley and sunny disposition, that even the rudest guest expects. This is hard when they have to deal with mismanagement as well. For instance, when Animal Kingdom had their AP preview, there were girls out there in the winter (which despite popular opinion, Florida does get very chilly) with no jackets. I felt very bad for them, and asked one of them, why Disney hadn't given them something to keep warm. The girl said that Disney had not yet gotten the AK jackets, and wouldn't let them wear anything else. Now I understand the theming thing, but I thought this was horrible. And it made me realize why CM's get disgusted.

Eisner is of no help either, as he seems to strike not comradery and approachibility, but fear. We saw Eisner at AK one day, and unlike Walt, he was surrounded by security as he toured the park. Later on, an associate I was with mentioned at City Hall in MK, that we'd seen him earlier at AK. The place suddenly became silent. You could have heard a pin drop, as if he mentioned the name that should never be spoken (from Harry Potter), until one meek voice asked, "He's here?" I've been told by some CM's, that he puts fear in the hearts of men. Is that really the kind of person that should be running the outfit. It is the CM's that make up the front lines of fantasy, so I'd think they would be the best asset, but instead they are treated like waste that can be recycled at a moment's notice.

In the meeting, I noticed he didn't respond to the lady that said he should spend some time OnStage to see where the problems lie. But Mikey's ego is way too big to be flipping burgers at Pinocchio's Village Haus.

ShadowWind

 

[FantasticDisFamily]

ShadowWind, I also thought the former CM that suggested it was time he "got back on stage" had an excellent point. It seems as if Disney's "allears" program is for everyone except ME.

JimC - as one of those b-school professors who spent many hours with the meeting playing on my computer, as did my dean down the hall - I have to say I was particularly UN-impressed with what the division heads had to say. That being said I will say I didn't hear all of the presentations in total - that work thing kept getting in the way!

Sure, they used the technology well (or perhaps their assistants did) and they used the right words. However, the content of their presentations was often flawed. The one that hit me in particular was when the head of Consumer Products (sorry still haven't ingested enough coffee to remember his name although I should) started quoting statistics about the growth in discount retailing over the past several years and used that as "proof" that this means Disney's "customers" also want high quality at low cost products. There was no explanation as to how this conclusion was drawn, no mention of correlation between those consumers who are shopping at Wal-Mart, etc and those going to Disney/shopping at Disney Stores. Most of the simple demographic data I have seen would suggest a SIGNIFICANT difference in the target markets of those two. Just one example.

As a b-school professor that "student" would have suffer low marks for failing to support his assertions with documented proof or fully articulated explanation for his conclusion.

Deb

 

[JudithM]

Originally posted by ShadowWind
There has always been people in all jobs that are just in it for the paycheck and aren't thrilled about their jobs. Disney used to do an amazing job of taking the bright eyed eager CM who just got there, and drilling into them the Disney tradition, by spending days, rather than hours, bringing them into the Disney experience. It wasn't just a job, it was representing the Disney name, and CM's could take pride in that, a pride that was passed along to the guests. Nowadays, they are lucky if they get trained hardly at all, but rather, due to the large turnover, are shoved out on stage, ...

I agree. CMs morale was one of the points Roy Disney & Stanley Gold talked about this week at the meetings. One of the points Stanley Gold made early on at the Save Disney meeting Tuesday was the the comapny's focus shifted from Cast Members to the bottom line. He also commented that in the future the company needs to be responsive & effective to shareholders, CMs, etc.

Originally posted by ShadowWind
... Eisner is of no help either, as he seems to strike not comradery and approachibility, but fear. ... In the meeting, I noticed he didn't respond to the lady that said he should spend some time OnStage to see where the problems lie. But Mikey's ego is way too big to be flipping burgers at Pinocchio's Village Haus.

ShadowWind

Are you forgetting the second person to speak in favor of Michael Eisner was Karen, the former "lowly ABC news producer" (her words) who said she was able to email Michael directly & he repsonded to her emails? Why didn't she wolrk up her chain of command with her suggestions & comments? I guess she was not fearful when she contacted Michael directly .

Alice was the former TDS CM who suggested Michael get on stage & meet CMs, see what they are doing, etc. She said she was a CM for 5.5 years & resigned for reasons similar to what Roy & Stanley have been saying - nobody has been listening. I feel this is a sad commentary from & about CMs who are the first ones the average person sees regarding Disney as a company whether it be at a park or in a store..

 

[JudithM]

Originally posted by FantasticDisFamily
... I have to say I was particularly UN-impressed with what the division heads had to say. That being said I will say I didn't hear all of the presentations in total - that work thing kept getting in the way! Sure, they used the technology well (or perhaps their assistants did) and they used the right words.

We were not overly impressed with the business presentations either. I have an annual report that said much of what I heard yesterday. If I heard the words "creativity" and "technology" one more time ...!

Originally posted by FantasticDisFamily
However, the content of their presentations was often flawed. The one that hit me in particular was when the head of Consumer Products (sorry still haven't ingested enough coffee to remember his name although I should) started quoting statistics about the growth in discount retailing over the past several years and used that as "proof" that this means Disney's "customers" also want high quality at low cost products. There was no explanation as to how this conclusion was drawn, no mention of correlation between those consumers who are shopping at Wal-Mart, etc and those going to Disney/shopping at Disney Stores. Most of the simple demographic data I have seen would suggest a SIGNIFICANT difference in the target markets of those two. Just one example.

As a b-school professor that "student" would have suffer low marks for failing to support his assertions with documented proof or fully articulated explanation for his conclusion.

Deb

The head of Division of Consumer Products (or DCP as he preferred yesterday ) is Andy Mooney. Your comments about Andy's comment on consumers wanting higher quality for lower prices reminds me of a lecture I heard on "lying with statistics." I am NOT saying Andy was lying, but rather the person listening has to question where those numbers & that information comes from.

I thought the Classic Pooh merchandise (toys, apparrel, bedding, etc.) was adorable, but I wonder why it was not being givien to The Disney Stores to sell. I expressed that concern tothe male CM in a suit who approached me to talk about this new line. When I mentioned it should be in The Disney Stores, a TDS CM comes over & says to me, "Oh we're all just one big happy family!" Tell me TDS CMs wouldn't like some of that line to sell.

And who came up with W.I.T.C.H.? Jetix? & some of those non-Disney look items we saw yesterday? They sure don't say DISNEY to me!

 

[FantasticDisFamily]

No! What they say to me is that the lack of creativity left within the company has gotten so bad they have to steal ideas. I did some searching yesterday and found an Italian site with the comic book. Granted I don't read Italian BUT had a striking resemblance to that "other" middle school moving on to high school wizard and Quidditch master we've all heard of!

Deb