The document summarizes the history of The Walt Disney Company, including key events such as its founding in 1923 and change of name in 1929. It describes Disney's rise under CEO Michael Eisner from 1984-1994, when annual profits increased fourfold. However, turmoil emerged in the late 1990s as net income declined and top executives exited. Poor governance and mismanagement, including by Eisner, led to a "Save Disney" campaign by Roy Disney and others to remove Eisner. By 2004, 43% of shareholders had withheld votes for Eisner's reelection due to his destructive leadership.

1. Presented by:
Ankush
Arpan
Chaitali
Dhawal
Shasanka Sahu

2. 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.
Four Major Business Lines- Media networks, Studio Entertainment
Parks and Resorts, and Consumer products
Walt Disney

3. 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.
 Eisner was paid well for his efforts in Disney. In 1988, he earned
whopping $40.1 million in compensation.
Michael Eisner
CEO, Walt Disney production

4. 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
Stanley Gold.

5. 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 Eisner’s reelection to the board.
 It showed the power of shareholder against the destructive leadership of Eisner.

7. Reasons behind lost magic of Disney
Destructive
Leadership
Corporate
Mis -
Governance
Poor
management
Abuse of
Power
Lack of
succession
Planning

8. “ Power tends to corrupt and absolute
power corrupts absolutely” – Lord Acton