Posted on 05/17/2003 1:10:59 AM PDT by kattracks
LANSDOWNE, Va - Fed-up shareholders of AOL Time Warner gave Steve Case and his cronies a big thumbs-down yesterday - withholding votes to reelect them to the board at the company's annual meeting here yesterday.While Case and the entire slate of directors were reelected, investors voiced their anger by giving Case's pal, former America Online exec Miles Gilburne, the lowest vote tally - just 65%.
Case got 78% of the votes, far less than AOL Time Warner CEO Dick Parsons, who received a near-unanimous backing from shareholders.
It was a clear sign that investors place much of the blame on the botched merger of America Online and Time Warner on the AOL side and are worried about prospects for a turnaround.
At the last annual meeting at the Apollo Theater in Harlem, Parsons said he'd try to fix the company. A year later, the stock's down 30%, closing yesterday at $14.24.
Criticism of AOL Time Warner's board and the way it's selected was the burning topic at the annual meeting held near America Online's Dulles headquarters.
One after another angry shareholder assailed Parsons, charging the company to give shareholders far more power in nominating board members.
"AOL Time Warner lost $99 billion last year," said Edward Feigen of the AFL-CIO, which owns shares of AOL Time Warner. "Clearly the company's in trouble and shareholders are looking for new leadership."
There were also some nasty words for outspoken media maverick Ted Turner, who recently dumped 60 million shares of stock after stepping down as the company's vice chairman. He'll remain on the board.
"You've done great damage by making a spectacle of yourself," said shareholder Scott Walker. "Why on earth should anyone vote for you?"
Another small stockholder spoke against big bonuses for the company's top brass.
"I have watched my investment lose 75% of its value," she said. "How can I support a vote for bonuses? What will AOL do for me?"
A calm Parsons acknowledged the empire's woes but tried to reassure the crowd that he believed a turnaround can be achieved.
"The road back may not be short but there are solid reasons to feel confident about our company," he said.
The media mogul cited the strong performance of all of the empire's division - with the exception of America Online, where he said he's beginning to see hopeful signs.
He was especially happy about the red hot opening of Warner Bros.' "Matrix:Reloaded" last Thursday.
"It took in $42 million yesterday," Parsons said. "It's the largest one day opening in the history of the movie business."
Originally published on May 17, 2003
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