Roy Disney Forced Out, Wants Eisner to Go

Reuters Roy Disney Forced Out, Wants Eisner to Go Sunday November 30, 9:59 pm ET By Peter Henderson

LOS ANGELES (Reuters) - Walt Disney Co. said on Sunday it was forcing Roy Disney off the board due to its mandatory retirement age policy, removing the last Disney family member from the board and a prominent critic of Chairman and Chief Executive Michael Eisner.

Clearly stung, Roy Disney said he would go and said Eisner should step down, a letter obtained by the Wall Street Journal showed.

The move may be the last act of a showdown between Eisner, who has led the company for nearly 20 years, and the man who recruited him and then became a chief critic.

"It is my sincere belief that it is you who should be leaving and not me," Roy Disney told Eisner in the letter dated Nov. 30, announcing he was stepping down from the board and his job as head of animation at the company named after his uncle.

George Mitchell, presiding director of the board, said in a statement that Roy Disney and two other directors, Thomas Murphy and Raymond Watson, would have to leave because of the mandatory retirement age, which is 72.

Disney will by 74 by January, when the board is expected to pick a new slate of directors.

The board's nominating committee, which had waived the retirement age cap in the past, had decided to apply the rule, Mitchell said.

"It is unfortunate that the Committee's judgment to apply these unanimously adopted governance rules has become an occasion to raise again criticisms of the direction of the Company, and calls for change of management, that have been previously rejected by the Board," Mitchell added in his statement.

Roy Disney, who led a 1984 restructuring and recruitment of Eisner, cited complaints about Eisner's leadership, including the performance of Disney's ABC television networks and its theme parks in the letter.

Disney said company performance had failed in the last seven years under Eisner's leadership. Other investors echoed Roy Disney's complains in recent years, but results have improved recently and shares have risen sharply this year.

An associate of Roy Disney who sits on the board, Stanley Gold, was not affected by the age cap.

Roy Disney, the nephew of company founder Walt Disney, in August said he struck a deal to sell more than 40 percent of his stake in the company, in which he was the largest individual shareholder.

Disney will be left with about 10 million shares, or 0.5 percent of the stock, less then the 14 million shares Eisner had in January. The deal in August allowed Disney to keep voting control of his stock for five years.

I worked for ABC for 10 years, the last 3 under Disney

I knew it was time for me to go when Disney instituted 'Diversity 2000'. It was a program designed ot put every Disney employee through 'diversity training', which was nothing more than leftist indoctrination.

The day I went, we'd been told that it was 'closed door', and that whatever was said in the meetings would remain anonymous.

The day started with a black man and a hispanic woman standing up before us dictating a litany of things that were wrong not just with Disney, but with society in general in terms of 'whitey having a foot on the minorities' necks'

At one point they were telling us that in all of our job endeavors we must strive to be inclusive. For instance, in news coverage we must seek to find 'silenced voices' to speak.

I had read Ken Auletta's "Three Blind Mice", about the leveraged buyouts of the 3 networks in the 1980s (ABC was picked up by Capital Cities at the time) and remembered a quote attributed to Don Hewitt, exec-producer of 60 minutes. In covering a story, he was said to have remarked, it's enough to find "one person for, one person against, and one kook". that was the prevailing network sentiment of 'balance" (not that they were interested in balance as we think of it today)

Anyway, I raised my hand and said, "Let me get this straight. If we're covering a news piece, we're to find witnesses based on their skin color?"

"In essence,' came the reply, "We are more interested in diversity"

So, I continued, "If I write a sitcom, like Seinfeld, I have to include in the cast an Asian, a black, a homosexual and a Puerto Rican?"

"Basically we're saying all voices have to be heard" came the reply

"That's the stupidest thing I ever heard," I said. "Seinfeld is about single Jews living in New York City. I have nothing in common with them; I live in the Chicago suburbs, I'm married and I was raised catholic. And it's the funniest damn show on TV. What are you people thinking?"

I found out soon enough that there was no anonymity to what was said. Again and again I heard from other members of management all the next day about my 'outburst' and 'serious concern about my inability to be a team player'

I left ABC, for that and other reasons, of my own accord, within 3 weeks...

TEXT OF ROY DISNEY RESIGNATION LETTER
Mon Dec 1 2003 00:42:12 ET

November 30, 2003

Mr. Michael D. Eisner, Chairman The Walt Disney Company 500 South Buena Vista Street Burbank, CA 91521

Dear Michael,

It is with deep sadness and regret that I send you this letter of resignation from the Walt Disney Company, both as Chairman of the Feature Animation Division and as Vice Chairman of the Board of Directors.

You well know that you and I have had serious differences of opinion about the direction and style of management in the Company in recent years. For whatever reason, you have driven a wedge between me and those I work with even to the extent of requiring some of my associates to report my conversations and activities back to you. I find this intolerable.

Finally, you discussed with the Nominating Committee of the Board of Directors its decision to leave my name off the slate of directors to be elected in the coming year, effectively muzzling my voice on the Board -- much as you did with Andrea Van de Kamp last year.

Michael, I believe your conduct has resulted from my clear and unambiguous statements to you and the Board of Directors that after 19 years at the helm you are no longer the best person to run the Walt Disney Company. You had a very successful first 10-plus years at the Company in partnership with Frank Wells, for which I salute you. But, since Frank's untimely death in 1994, the Company has lost its focus, its creative energy and its heritage.

As I have said, and as Stanley Gold has documented in letters to you and other members of the Board, this Company, under your leadership has failed during the last seven years in many ways:

1. The failure to bring back ABC Prime Time from the ratings abyss it has been in for years and your inability to program successfully the ABC Family Channel. Both of these failures have had, and I believe, will continue to have, significant adverse impact on shareholder value.

2. Your consistent micro-management of everyone around you with the resulting loss of morale throughout this Company.

3. The timidity of your investments in our theme park business. At Disney's California Adventure, Paris and now in Hong Kong, you have tried to build parks "on the cheap" and they show it, and the attendance figures reflect it.

4. The perception by all of our stakeholders -- consumers, investors, employees, distributors and suppliers -- that the Company is rapacious, soul-less, and always looking for the "quick buck" rather than the long-term value which is leading to a loss of public trust.

5. The creative brain drain of the last several years, which is real and continuing, and damages our Company with the loss of every talented employee.

6. Your failure to establish and build constructive relationships with creative partners, especially Pixar, Miramax, and the cable companies distributing our products.

7. Your consistent refusal to establish a clear succession plan.

In conclusion, Michael, it is my sincere belief that it is you who should be leaving and not me. Accordingly, I once again call for your resignation or retirement. The Walt Disney Company deserves fresh, energetic leadership at this challenging time in its history just as it did in 1984 when I headed a restructuring which resulted in your recruitment to the Company.

I have and will always have an enormous allegiance and respect for this Company, founded by my uncle, Walt, and father, Roy, and to our faithful employees and loyal stockholders. I don't know if you and other directors can comprehend how painful it is for me and the extended Disney family to arrive at this decision.

In accordance with Item 6 of Form 8-K and Item 7 of Schedule 14A, I request that you disclose this letter and that you file a copy of this letter as an exhibit to a Company Form 8-K.

With sincere regret,

(Roy Disney signature)

cc: Board of Directors

Eisner is a big reason for the liberal bias in the media.

Disney's name and corporation was usurped by the liberal/socialists to alter the fabric of America.

I have wondered if the usurping occurred as part of a democrat liberal plan or if it was just degeneration in the leadership of the company.

At this point it is almost comical to read Roy Disney's letter. It was patently obvious to our analysts that the company was misrepresenting the amount of investment in the trademark themeparks. Instead, the parks were not gearing for Walt Disney quality, but instead Michael Eisner cheapness. Roy Disney's letter reflects that impression, often discussed here on Free Republic.

The humor in the letter is that it is so clear what is occuring in America.

The only question is whether or not citizens will continue to buy Disney DVDs, tickets, and patronize ABC advertisers.

Or, instead, the citizens will rise as shareholders and request a change in the cultural microphone of America.

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