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Roy E. Disney, vice chairman of Disney and the corporation's last link to the family, resigned from the board and called on Michael Eisner to resign or retire. The letter was hand-delivered to Eisner's Manhattan apartment:
"Michael, I believe your conduct has resulted from my clear and unambiguous statements to you and the Board of Directors that after 19 years at the helm you are no longer the best person to run the Walt Disney Company. You had a very successful first 10-plus years at the Company in partnership with Frank Wells, for which I salute you. But, since Frank's untimely death in 1994, the Company has lost its focus, its creative energy, and its heritage...(edited)
"In conclusion, Michael, it is my sincere belief that it is you who should be leaving and not me. Accordingly, I once again call for your resignation or retirement. The Walt Disney Company deserves fresh, energetic leadership at this challenging time in its history just as it did in 1984 when I headed a restructuring which resulted in your recruitment to the Company.
"I have and will always have an enormous allegiance and respect for this Company, founded by my uncle, Walt, and father, Roy, and to our faithful employees and loyal stockholders. I don't know if you and other directors can comprehend how painful it is for me and the extended Disney family to arrive at this decision."
Reporters are surprised but don't see Eisner going anywhere.
L.A. Times: Although the company's problems are well known, Roy Disney's recitation was remarkable in its tone and content, exposing the severity of his professional and personal rift with Eisner. Plus: Eisner Likely to SurviveNew York Times: Mr. Disney, the only Disney heir on the board, has been at odds with Mr. Eisner for nearly two years. Mr. Disney and his investment adviser and fellow board member, Stanley P. Gold, tried to orchestrate Mr. Eisner's ouster last year. The effort failed after a six-month struggle. The acrimonious letter from Mr. Disney comes at an odd time as the company's finances have improved in recent months, particularly in its film division, which has had one of its best years in more than a decade.
Variety: Industryites were shocked by Roy Disney's resignation despite a history of Mouse board tensions, as earlier storm clouds over the Magic Kingdom seemed to be clearing up. Disney recently posted good -- if not great -- annual earnings. And though conglom has been the target of shareholder unrest in recent years, there was scant sign of such dramatic action by a lead investor. Roy Disney is currently Disney's second-biggest individual investor, after Eisner.
Hollywood Reporter: While Disney offered his resignation as a protest over Eisner's management of the company, the company's response was that it was a retaliatory gesture on the part of the 73-year-old Disney, who was not going to be recommended for a spot on the board because of his age.
Financial Times: The departure and open hostility of Mr Disney, nephew of Walt Disney and still a substantial shareholder, are likely to reignite the debate about the media company's direction.