Presented by:

Ankush
Arpan
Chaitali
Dhawal
Shasanka Sahu
 Company
Profile
Founded By Walt Disney and Roy O. Disney in 1923.

In 1929, company name changed to Walt Disney Productions

Headquarters: Burbank, California, United States.

Popular for Cartoon icons such as Mickey Mouse, Donald Duck

, and Snow White.
Walt Disney
Four Major Business Lines- Media networks, Studio Entertainment
Parks and Resorts, and Consumer products
 Rise of Michael
Eisner
In 1983 , Walt Disney Profits were falling. Roy Disney and Stanley
Gold who were
biggest shareholders and also Board of Directors of the company
started hunting
for new CEO.

In 1984, Michael Eisner who was the president of Paramount Pictures

appointed
as the CEO, and Frank Wells became the COO of the company.

Under the leadership of Michael Eisner and Frank Wells,

annual profits went from $291 million to $1.11 billion (4 times )
and stock price increased 1300% from 1984-1994.
Michael Eisner
Eisner was paid well for his efforts in Disney. In 1988, heCEO,
earned
Walt Disney
production
whopping $40.1 million in compensation.
 Disney in Turmoil- Story
unfolds
In 1994, Frank Well died in a tragic accident.

Lot of Top Management exits Steve Burke (president of ABC

broadcasting), top
strategist Lawrence Murphy, CFO Richard Nanula.

Decrease in Net income from 1997 onwards.

Corporate governance at stake :

Eisner literally had owned the Board he had many of his friends
and acquaintances as his board members
Eisner bent rules for benefit of specific board members.
Board Members were not qualified for their role. They had little
knowledge about the business.
Business Week listed WDC as 25 worst boards in America.

Mis-governance and Mis-management had lead to resignation of Roy

Disney and
 Save Disney
Campaign
Roy Disney and Stan Gold were very much committed to remove
Eisner. So they
launched website SaveDisney.com to spread their campaign.

They had full support from retail investors.

(Disney shareholders- 35% retail investors, 55% institutional
investors, 10% pension funds)

It became a populist campaign. They tried to reach maximum

shareholders.

In Annual Shareholder Meeting in 2004, 43% of shareholders had

withheld their
votes for Eisners reelection to the board.

It showed the power of shareholder against the destructive leadership

of Eisner.
Reasons behind lost magic of
Disney
Abuse of
Power

Destructiv Corporate
Poor
manageme
e Mis
Leadershi -Governan
nt
ce
p

Lack of
succession
Planning
 Power tends to corrupt and absolute
power corrupts absolutely Lord Acto