Disney boss set to face critics
Disney boss set to face critics
3/3/2004 13:58
Disney boss Michael Eisner is to face the critics who have been trying to oust him when he attends the company's shareholders meeting on Wednesday.

Roy Disney, a former Disney director and nephew of founder Walt, has been leading calls for Mr Eisner to quit.

He complains that the company's share price has underperformed, leaving it open to hostile takeover bids.

Mr Eisner, who is both chief executive and chairman, also is accused of poor strategic thinking and management.

Not enough

According to the BBC's North American business correspondent Stephen Evans, the critics argue that Mr Eisner has failed to "produce enough blockbuster successes in the true Disney tradition".

That is why the failure to extend a highly profitable partnership with Pixar Animation, the creative force behind films such as Finding Nemo and Monsters Inc, was so keenly felt.

Especially as the subsequent drop in share price prompted a hostile bid from cable television company Comcast.

Mr Disney, and ally Stanley Gold, who both resigned from the board last year, have argued that getting rid of Mr Eisner would boost the value of shares, making the company too expensive for predators to buy.

In the run up to Wednesday's meeting, they have been visiting shareholders, urging them to withhold votes in protest when they are asked to approve Mr Eisner's role as chairman.

Hanging in

While there is no chance of unseating Mr Eisner at Wednesday's meeting, his critics are hoping to set in motion a chain of events that will eventually see him forced out.

"The vote is all about registering a protest," said the BBC's Stephen Evans. "A strong protest will put pressure on Disney and the man who runs it".

But "whatever the size of the dissident vote, Mr Eisner will survive because Disney rules demand that a successor be nominated and one hasn't been."

Mr Eisner, who has run Disney since 1984 and is often called autocratic, is unlikely to go quietly.

He is expected to use Wednesday's meeting to drum up support for his tenure, highlighting the recent recovery in share price and the improving outlook for profit growth.

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