The Five Dumbest Things on Wall Street This Week

[Zurg]

http://www.thestreet.com/_yahoo/markets/dumbestgm/10147037.html


1. Disney's Lesser Evil
Not that anyone asked us, but we at the Five Dumbest Things Research Lab were a little surprised that Disney's board decided to mimic the Miss America pageant's policies for choosing replacements: When one crowned head is publicly embattled -- for a scandal or just simple incompetence -- they just wheel in the first runner-up.

It makes sense on one level. After all, what's the difference? Otherwise, though, we're a little hard-pressed to explain why Disney's board chose former Sen. George Mitchell to succeed Michael Eisner as chairman.

That move, of course, came in response to the unprecedented no-confidence vote on Eisner. As Disney announced at the close of its 5 1/2-hour shareholder meeting Wednesday, 43% of voting shareholders opposed re-electing Eisner to Disney's board. So, addressing one of investors' concerns about Eisner -- that he wielded too much power as both chairman and CEO -- the board took away one of those posts and handed it to Mitchell, its lead independent director.

That sounds like a good idea, except for one teeny-tiny thing: Among the objects of shareholder ire Wednesday, Mitchell was the second most popular target. Symbolic of a board perceived to be independent by definition but not in spirit, Mitchell was graced with a 24% "withhold" vote.

Now, let's not let Eisner's spectacular flight into the annals of shareholder disaffection overshadow Mitchell's remarkable achievement.

Yes, 24% is nothing to sneeze at. Think back, for example, to last May, when shareholders of AOL Time Warner (since renamed Time Warner (TWX:NYSE - commentary - research)) unloaded their wrath on former AOL Chairman Steve Case, one of the chief architects of the money-sucking deal that created AOL Time Warner.

Shareholders, you'll remember, had already chased Case's collaborator, Jerry Levin, from the company. And Case had already stepped down from his chairman post at the new company.

So how many AOL Time Warner shareholders withheld their votes for Case? 22%.

Yes. Mitchell is even less popular than Case. And for that, he gets a promotion!

"We are aware that some voted for an immediate change in management and in the board," Disney's board said Wednesday. "However, taking all of these factors into account, we believe the action we have taken today is in the best long-term interest of the shareholders of the company."

"Best long-term interest" doesn't quite capture what's going on, we think. Instead, the episode reminds us of how we feel most every Election Day: Forced to choose among a bunch of losers, who irritates us least?

 

[WDSearcher]

Well it's no fun if you don't post the other four!!

 

[Zurg]

follow the link

 

[WDWHound]

I loved this from page 2...

 

[Zurg]

It was too cold to sleep.

They turned the heat off at about 12:30.

 

[JudithM]

The air temperature in the convention center hall was freezing. Several of us asked about it, & no one would take responsibility. All we got was a runaround - ask a Disney CM, ask a convention center person, ask this one, ask that one.

In addition they turned down the lights, so it was hard to take notes. BUT, I had a small flashlight in my purse & used it! I was sitting in an aisle seat in the middle of the room & was waiting for someone to tell me to turn it off. Fortunately, no one did! The three screens up front would have been fine with lights on - heck they were on when we were watching Mickey cartoons before the meeting!

 

[coloradomtgirl]

Hi,
Well I voted to withhold Michael et al for all our Disney shares...strange tho, the phone voting was difficult at best. And they sent proxies for duplicate shares which was also strange. I only had time to vote that night, just before closing, so had to do it by phone. Weird that they were mailed out so late too.
HMMMMM
But the fact that so many voted NO really speaks loud and clear.
I feel a wee bit empowered!
coloradomtgirl.