Michael Eisner was yesterday forced to stand down as the chair of the Disney Group, following a shareholder revolt.
However, Eisner will keep his position as chief executive, despite 43 per cent of the company's shareholders voting against the continuation of his leadership.
The revolt was lead by former board member, Roy Disney – nephew of the company’s founder, Walt.
Roy Disney claimed Eisner’s strategy has transformed the company into a ‘soul-less entity’, always looking for ‘the quick buck’, rather than attempting to create long-term goals.
Some analysts have said that the shareholders’ action comes two years too late, however, many claim Eisner has vindicated his strategy by improving the media giants’ fortunes.
Despite having a tumultuous five years, the Disney Group has pulled back some of the profit losses it suffered after 11 September 2001.
Reporting its first quarter figures last month, Disney announced a five per cent rise in revenue from its theme park business.
The price of shares in the group has also recently recovered from their slump, largely helped by the hostile takeover bid from cable company, Comcast.
Former US Senator, George Mitchell, was elected chair to replace Eisner. Details: www.disney.com
