Disney president to succeed Eisner
By Gary Gentile
Associated Press
LOS ANGELES — The Walt Disney Co. said yesterday its president, Robert Iger, will succeed Michael Eisner as chief executive and that Eisner will leave his post one year earlier than previously announced.
The company said Iger was unanimously elected by the board at a meeting Saturday and will take charge Oct. 1, which is the start of Disney's 2006 fiscal year. Eisner will step down the day before, although he will remain on the board for another year. Disney will pay him through Sept. 30, 2006, when his contract expires.
Iger
Eisner will end his tenure at the media and theme park company after serving 21 years. Iger will become only the sixth leader of Disney in its history.
The announcement came under immediate fire from two prominent shareholders who questioned the integrity of the process, noting Iger's insider status and close ties to Eisner.
But Disney board chairman George Mitchell said Iger's choice came after a "lengthy, thorough and professional selection process" that included serious consideration of outside candidates. He declined to be more specific, but an eBay Inc. spokesman confirmed yesterday that eBay CEO Meg Whitman had withdrawn her application for the job Friday after being interviewed.
NAME: Robert A. Iger AGE: 54; born Feb. 10, 1951, in New York. EDUCATION: Graduated magna cum laude from Ithaca College. EXPERIENCE: Began his career at ABC in 1974 as a studio supervisor, then worked for 12 years at ABC sports; vice president of ABC Sports in 1987; president of ABC Entertainment in 1989; president and chief operating officer of ABC 1994; chairman of ABC Group and president of Walt Disney International, 1996; president and chief operating officer, The Walt Disney Co., 2000. FAMILY: Married to broadcast journalist Willow Bay; two daughters and two sons. QUOTE: "It is truly an honor to be entrusted with the responsibility of guiding this great company that occupies such an important place in the hearts and minds of millions the world over toward a very bright future."
"We believe Bob Iger represents the right blend of continuity, of very successful performance ... and a recognition of needed change" in the areas of new technology and expanding the company's business in Asia, Mitchell said during a conference call with reporters.
The Iger file
"This is not a huge surprise," said Paul Kim, an analyst for New York-based Traditional Asiel Securities. He said Disney has done a good job of cutting costs and increasing profits over the past 18 months, and Iger's challenge will be to continue that momentum.
During yesterday's conference call, Mitchell strongly denied charges made by former board members Roy E. Disney and Stanley Gold that Eisner inappropriately participated in candidate interviews. The two also alleged that some external candidates declined to be interviewed because of Eisner's role.
"We find it incomprehensible that the board of directors of Disney failed to find a single external candidate interested in the job and thus handed Bob Iger the job by default," the two men said in a statement. "The need for the Walt Disney Company to have a clean break from the prior regime and to change the leadership culture has been glaringly obvious to everyone except this board."
Mitchell said Eisner was never present during any interviews with Iger and attended only part of one meeting with an unidentified candidate.
"That was the full extent of his interaction with any candidates, internal or external," Mitchell said yesterday. "The allegation is false and irresponsible."
Iger, a board member, did not participate in any succession planning meetings, Mitchell said.
Mitchell also said drastic changes in the company are not needed.
"If you are a major investor and the company has produced a 60 percent increase in earnings, has just increased its dividend 14 percent, has record cash flow and a substantial increase in return of invested capital, you don't encourage major change," Mitchell said.
Iger, 54, who also serves as chief operating officer, was considered a front-runner for the post from the start.
He was president of Capital Cities/ABC when Disney bought the company in 1995, and went on to become president of the ABC Group and head of Walt Disney International. He was named president in 2000.
He has kept a relatively low profile at the company, although he has been more vocal about his vision for Disney since last September, when Eisner announced plans to depart.
Iger is credited with reversing the fortunes of Disney's ABC television network, which had slid to fourth in the ratings. The network is poised to turn a profit this year and is improving in the ratings thanks to hits such as "Desperate Housewives."
