WHOA! Roy Disney's Resignation Letter

[TreeOfLife]

Good for you, and many guests wholehartedly agree with the decline in the "magic" of Disney, compared to what we knew it to be ten years ago...

The emphasis seemed to have shifted to lower quality promos and services offered to guests, particularly AP holders and resort guests.

http://abcnews.go.com/media/FrontPage/images/Disney_113003.pdf

 

[CarolA]

Maybe it is just me, but I think this was not a good move by Roy. The only thing I agree on is the "parks on the cheap", but since Hong Kong is not built it is kind of hard to say that he is right there.

He comes across as whining because he did not get his way. The statement about "you should be leaving and not me" just sounds childish. His assumption seems to be that he knows more than anyone else. Maybe he is right, but the letter does not come across well. It just looks like a publicity grab.

(Notice he did not say he was selling the family stock?)

 

[mickeymule]

From what I read, he is also selling quite a bit of his stock.

 

[CarolA]

Well, that will cost him. If he sells the stock he effectively has NO input and really has lost the right to complain. I figured he would try to do a proxy battle and to do that he needs to be a major stockholder!

 

[TreeOfLife]

He comes across as whining because he did not get his way.

I am not too sure about that, Eisner's policies have been obviously detrimental to the morale of both cast members and guests in recent years. All feel unappreciated, and with good reasons.

The statement about "you should be leaving and not me" just sounds childish

To some, perhaps. But I feel he speaks hte truth. Eisner has led the company into a financial hole. Stocks have not even had a split since '98!

I do agree with the fact that the management needs fresh blood. And judging by the trends, it better come urgently!

 

[Chad&Janet]

I am in agreement with Roy and Treeoflife.

I do not feel the letter came across as childish. Blatant and sincere, perhaps; but not childish.

 

[Calcio]

Roy's letter is 100% accurate and to the point.

Take a careful look at Disney since the release of the Lion King in June of 1994. If you find a single sustainable success notify the financial press, as they certainly have not found one.

Beyond the extremely poor financial performance since 1994 (and yes, Roy's letter points out and thanks Eisner for the superior performance from 1984 - 1994), the company is in shambles. Frank Wells is dead, Jeffrey Katzenberg is gone, Michael Ovtiz' tenure was one of the most stunning failures of all time (let's see, a $100 million payoff to go away, about 100 million shares outstanding at the time, every single shareholder was effectively hit for $1 a share on that one), and the managerial talent continues to leave.

ABC? Enough said. California Adventure? Same. Disneyland Paris? From horrible to acceptable, and now headed back down. Animated features? Complete hit and miss. Live action features? Hit and miss again, with more to the miss. The Disney Channel? Well in the mid 1980's it was wonderful, now find once success beyond Lizzie McGuire.

Eisner did a great job for 10 years, but since then a complete disaster.

Look at the Board of Directors has been effectively purged of anyone who isn't a "Michael guy." Any truly independent directors (Stanley Gold, Roy E. Disney) have been chased away, leaving nothing but those who owe their position and allegiance to Eisner.

And lastly (mentioned in Roy's letter), what about a plan for succession? Let's see, the current CEO has been in the position for 20 years, has a history of heart troubles, and not only has no plan for succession, he has chased away anyone who possibly could ascend to the position.

Sorry, but Eisner's reign, and you can call it that, can be clearly broken into a 10 year golden age, and a 10 year disaster. Anyone who challenges him about the recent performance of Disney (in the stock market, the film market, the theme park market, any market) gets painted as the bad guy and chased away.

I'm still headed for Orlando twice this winter (once for the marathon, and once in March), and I still have a soft part in my heart for what Walt created, Ron Miller almost ruined, and Eisner turned around twice (up, then down). But it's time to GO.

 

[Mike_in_FL]

CarolA,
FYI - although Roy Disney is selling a chunk of his stock (40%), he will still have 10 million shares, or around 0.5%. Also, his resignation appears to be because they were about to force him off the board. He is 74, and they have decided to enforce the mandatory retirement age of 72 (something they have not done in the past). Two other directors are also affected.

My own opinion is that the departure of the last family member is a sad day for Disney. I hope the company will listen to what he had to say and honestly assess themselves for areas where they need to improve.

FWIW,
Mike

 

[Horizons16]

wow... i just heard that on the news this morning... thanks for the post..

 

[tfc3rid]

Check out Stanley Gold's letter of resignation. The whole age thing is phony... It is spin.... Pure garbage. It does not apply to Roy Disney.

 

[georgina]

Originally posted by tfc3rid
Check out Stanley Gold's letter of resignation. The whole age thing is phony... It is spin.... Pure garbage. It does not apply to Roy Disney.

That's what I heard too...the mandatory retirement age does not apply to non-management directors.

 

[sters]

A good letter which reflects both his hurt and frustration and need to comminicate it. I, too, feel that theme park expansions have been done "on the cheap" and that everything is for a buck. Why, you can't even get a good cup of coffee at Dinsey anymore! I'm glad you posted the letter, because CNN only quoted the one sentence about "you should be leaving and not me" and it provided not insight at ALL. So, thanks for giving us the letter.

 

[Mike_in_FL]

I would tend to agree that the age thing is being used as a convenient way to push Roy Disney out. Nonetheless, it seems clear that they were indeed planning to do it this way (check out some of the quotes from George Mitchell, presiding director), and so he quit before they could do it. If Gold's statement is correct, that as a management director he was exempt from this rule, I guess he could have stayed to fight. Maybe he realized they would just find another way...
Mike

 

[merryweather's twin]

This is truly sad day for Disney.

 

[pmcpmc]

why has he not been CEo and is his division so successful

 

[danny1649]

The ends and out's of all this,I do know I feel sad that no Disney family member is now going to help run a company started by Walt and his brother Roy Disney.I also know Walt was a guy who was always trying to better the experience for his guests.I don't think current management has that same goal.

 

[Fantasmic303]

*rubs hands together excitedly*

A few things crossed my mind when I heard the news about Gold and Roy:

1 - Just because I'm sentimental, I want a Disney in there, and I'll be sad to see Walt's nephew leave on these terms.

2 - First Roy, then Gold...if they keep on resigning, maybe a job will open up for me!!

3 - I agree with Roy...out with Eisner, in with people who bleed pixie dust!! (Or something to that equivalent...you guys know what I mean...)

Either way, someone's headed out....I better spruce up my resume!!

 

[Cinderella37]

Judging by statements made by Gold in his letter, as well as knowing the events in 1984 when Roy orchestrated the "takeover" that ousted Ron Miller and company (Walt's son-in-law), I wouldn't be surprised if Shamrock (headed by Roy and Stanley Gold) aren't planning a takeover of sorts. Let's keep our fingers crossed...

 

[mkutch]

Did anyone hear about Eisner's response to Roy's letter or his resignation?

 

[TreeOfLife]

Did anyone hear about Eisner's response to Roy's letter or his resignation?

Interesting question!

At this point, I don't think there's much to respond to. I suppose Eisner is best serving the request to publish the letter and hoping people forget about it soon, without making any comments

In fact, the decline of Disney as an entertainment company in the last few years speaks for itself, after all. Other entertainment businesses will soon devour whatever Eisner leaves of Disney.