USA: Disney Board Greenlights Eisner Strategy

26 September 2002

Under-fire Walt Disney Company ceo Michael Eisner gained the unanimous approval of the company’s board of directors for his plan to revive its fortunes.

Disney has been hit recently by a fall in visitor numbers at its theme parks and by the woeful performance of its broadcast network ABC.

The plan – details of which have not been revealed – includes short-term strategies for each Disney unit plus opportunities for long-term expansion.

Also discussed was a restructuring of the board itself, in order to respond to criticism that Disney’s directors are not sufficiently independent of Eisner.

“Today,” said the ceo, “we furthered our commitment to enhanced governance by expanding the capacity of our governance and nominating committee to address recent legislative and regulatory developments.”

However, the future of three board members whose independence is compromised by having family working for the firm has not been resolved. Under new governance rules Disney plans to adopt, a director cannot be considered independent if a family member has worked for the company in the previous five years [WAMN: 13-Aug-02].

Data sourced from: Washington Post Online; additional content by WARC staff