Vote in, so what now?

[mikeymars]

O.K., 43% of shares withheld support for Eisner, and no -- repeat, NO -- chairman of a public company has EVER seen more than a 28% withhold vote.

As I write this, the board is meeting. Presumably, only one of three outcomes is possible:

(a) STATUS QUO: Board reads votes literally and simply says a majority of shareholders have voted to retain the existing Chairman and Board.

(b) EISNER DEMOTED: Boards announces some sort of Eisner "demotion," e.g. splitting job of Chairman and CEO (lots of speculation on different variations of this; I'm simply collapsing them all into a category called "Eisner Demoted."

(c) EISNER GETS THE BOOT: Eisner resigns (and perhaps some of the Board does also). As to who the replacement might be, that's an entirely different (and even more complicated ) discussion.

Any speculation on the likelihood of each of these? Frankly, I'm torn between b or c being the likeliest outcomes at this point.

 

[RadioNate]

He won't resign, at least not yet. My bet is that they'll split the positions with Eisner remaining as CEO. In a few months he'll step down citing his health or someother reason. He won't be forced out...he'll try to make it look like he's leaving on his own terms.

 

[DisneyKidds]

The ironical (sp intended ) thing is that the thing that would gain him the most respect (as little as that really can be) is the one thing his ego and desire to be respected won't allow him to do.

I'd actually respect the man if he acknowledged the vote and stepped down now of his own volition. He can continue to maintain how great he is and what a great job he is doing.....but state that he respects the voice of the shareholders and is taking action as a result of their misplaced vote of no confidence.

Of course his ego won't allow him to do that. Instead he will slink around for a while and creep out the door when he thinks nobody is paying attention (if he decides to creep out at all). Of course that won't work and it will only make him look worse.

Wouldn't surprise me if he digs his heels in, only leaving if the board hands him a pink slip. Is the board obligated to do that after such an unprecedented vote?

 

[KNWVIKING]

***"My bet is that they'll split the positions with Eisner remaining as CEO."***

ME would have to agree to this, because his contract specifically says it can't happen.

 

[lillasmom]

What about the other votes of no confidence? What happens to the others and has anyone figured out the % for them?

 

[airlarry!]

I am shocked, stunned, and flabbergasted. I never in my wildest dreams thought that 43% of the stockholders would withhold this vote.

To think that there have been times when I thought that me and a few ragtag friends on a now-defunct board were spittin' in the wind, because nobody else really saw the decline, and nobody else really cared. I was wrong, there are apparently more people in The Element than ever I dared to dream.

Now I am not some idealist who thinks that every shareholder voted this way because they are painting the parks in the daytime, or that they didn't build a monorail to DTD...I understand that many of the instutional voters voted with their wallets.

But at this point, I still believe that there are a bunch of voters out there who understand that Michael's dictatorship has eroded confidence in the company and its future over the last ten years.

In other words, almost half of the voters have made it clear---it doesn't matter what happened from 1984-1994, what matters is that the last ten years have not been 'The Decade of Disney,' its been the "Era of Ei$ner."

I wait with breathless anticipation for the board's next move, and not just a little trepidation, also.

 

[DC7800]

Eisner must at least now be looking for a graceful way out, if he cannot hold onto power at Disney. If someone can figure a way to spin the seperation of chairman and CEO as a positive move (for Mike to spend more time with his family, health reasons, etc.) then that might be a possibility. More likely, I'm guessing, is to find Eisner an "escape hatch" to someplace else. Just as Pressler left for The Gap, Eisner now needs a "sideways" career move that can be spun as a step up the ladder for a CEO as "talented and creative" as Mr. Eisner. I can't imagine why, but apparently many of the sharholders still think Eisner is the right man for such a job. All Mike needs is a vacant CEO position with a media company in need of a micromanager.

 

[Luv2Roam]

seperation of chairman and CEO

Something to keep in mind -- the vote was not about separation of duties. It was about faith in ME and his board.

It will be interesting to see how this plays out for them as well as ME.

 

[mitros]

I won't begin to claim an understanding of the machinations of Boards and CEOs, but since a majority of the board are friends and supporters of Ei$ner, and without a 51% nay vote, won't they be tempted to leave things in the "status quo"?

 

[Luv2Roam]

I don't think thet are in a position they can ignore it.
It will be interesting how they spin the outcome, point fingers, and give in what they feel they have to in order to appease shareholders.
I don't expect any more give than they absolutely have to.
But I will be surprised if a new SEC law does not step up and take effect before the next shareholder's meeting. Then what the board doesn't do is of no consequence. It's in the shareholder's hands.

 

[JudithM]

I think Michael Eisner's ego is too big for him to just step down voluntarily. You should have seen the look on Michael's face this morning when Stanley Gold & Roy Disney took to the podium. Stanley & Roy were given a loud round of applause & a standing ovation while Michael looked totally stunned & irate that this would happen.