Posted on 03/08/2005 1:59:44 AM PST by Liz
Disney shareholders are demanding the media giant's directors repay the company $262 million for failing to properly police the hiring and firing of Michael Ovitz.
The total includes $129.8 million in severance paid to Ovitz plus $132.4 million in interest dating from the December 1996 firing, according to court papers filed yesterday which outline the shareholders' closing argument.
"The record demonstrates that the [Disney] board recklessly and faithlessly ignored its fiduciary responsibilities by failing properly to assess the terms of [the contract] before hiring Ovitz," lawyers for the shareholders claim.
"In fact, the board's misconduct went far beyond mere inattentiveness to its duties or gross negligence," it is alleged.
The filing in the Delaware Chancery Court is the latest salvo in the nine-year feud between Disney shareholders and its board, which was highlighted by a six-month trial last year.
The shareholder suit claims the board allowed Eisner to take charge of the Ovitz hiring and failed to check the massive contract that ended up costing Disney $130 million.
On the stand, Eisner admitted that he personally negotiated much of Ovitz's lucrative contract for the one-time agent to become the No. 2 exec at the media giant.
The contract was far greater than any other non-CEO in the country.
Eisner also testified that he terminated Ovitz as per the "non-fault" provision in the contract.
Eisner said he decided to fire his best friend and "life partner" because Ovitz couldn't operate properly in a public company.
The trial revealed highly embarrassing moves — or non-moves — on the part of the board.
--SNIP--
That opportunity was to follow up on allegations, contained in the filing, that Ovitz was a "habitual" liar. Under the law, that would trigger a "for-cause" firing.
(Excerpt) Read more at nypost.com ...
(Sniffle) Well, what would you do? Eisner thought Ovitz was gonna be his partner for life (sob).......
Gee, an agent got the better of a movie exec. I don't know if I believe that...
What? Does this mean what it looks like?
Hold on -- is that "life partner" stuff code for "accomplice in sodomy?"
Eisner suffers from same-sex attraction disorder?
So much falls into place with that piece of information.
Yup a real above board company. Since Disney Died this place has been filled with nothing but giant RATS and it will never change..
Neither is gay. Though Eisner did get shafted in the deal.
Weird choice of phrase, then, isn't it?
It's all about suing in order to embarass the board, plus trigger certain provisions in the insurance that each board member carries (called E&O for errors and omissions). So if successful the insurance company will pay off.
It's supposed to imply they're gay, hence the "sweetheart deal."
Eisner is gay??
......only their hairdressers know for sure (snicker)........
ROTFLMCO.......I guess Eisner figured out a way to get it.
If the reporter intended this as a smear by inference, the reporter is behaving unethically as well. I don't like it when the press does this to people in the administration, and I don't like it when this reporter does it either.
The board, from what I know of it, trusted Eisner because he made a ton of money for the company and boosted stock value. He never groomed someone to take over and after awhile employees turned against him. Nobody wants to work those hours...
Far be it for me to dispense unsubstantiated rumors, but there has been talk about Eisner dressing up as Goofy ---and palling around with Bruce, Criag, Troy, and the boys on Gay Day at Disney
What? No comments about Mousewitz or Duckau, which is what employees call it.
Very calculated, to be sure.
I guess there's no desire to turn Eisner into a "victim".....not to the degree that he will portray himself, in any event.
You know what they say about Disney -- if you're not there early on Saturday morning, don't even bother showing up Sunday.
Eisner stayed at the party too long.
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