Eisner to Resign as Disney CEO in 2006
Sept. 10, 2004 — -- Michael Eisner plans to step down as chief executive of the Walt Disney Co. when his contract expires in 2006, he said in a letter to the company's board of directors that comes on the heels of a very public battle with dissident shareholders over the company's performance and direction.
In the letter filed today with the federal Securities and Exchange Commission, Eisner said he will spend the next two years helping the board find a successor and continuing Disney's recent upswing after financial troubles the past several years. Disney is the parent company of ABC News.
"I expect the next two years will be critical to the future of our company and that we must take advantage of the positive projections we anticipate," Eisner said in the letter.
Eisner, who has led Disney for 20 years, faced a challenge in March when former board members Stanley Gold and Roy E. Disney, the nephew of company founder Walt Disney, led a shareholder revolt, claiming the company's shaky financial performance in recent years was a sign Eisner's authoritative style was not working. Eisner remained as CEO, but his position as chairman went to former Sen. George Mitchell.
Attendance at Disney's theme parks has slipped, and the company's media networks, including ABC, have struggled. The profits from Disney's animated films declined in recent years, and earlier this year the company failed to renew a deal with Pixar Animation Studios, the company that produced such hits as Finding Nemo and Toy Story during its partnership with Disney.
During the past few weeks reports have pointed to Disney Chief Operating Officer Bob Iger as Eisner's handpicked replacement. But some analysts say unless ABC turns in substantially improved performance this season, Iger could face a difficult battle to win the corner office.
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