Peace in Burbank: Disney War Over

Published July 8, 2005

By C. W. Oberleitner

Late Friday afternoon, Roy E. Disney and Stanley P. Gold ended the bitter, two-year old Disney War. In a joint statement released to the media late Friday afternoon after the markets closed, the two former directors along with the Walt Disney Company announced that they have agreed to set aside their differences.

Messrs. Disney and Gold are dropping their lawsuit against the Disney Company. In addition, they will not run a rival slate of directors or submit shareholder resolutions for the next five years.

For its part, the Disney Company has agreed to reestablish ties with Roy E. Disney and his family. Disney will be given the honorary title of director emeritus and consultant.

The Disney Company also "reaffirmed its commitment to the rotation of committee members and chairpersons on its Board committees," which is currently required by the company's current corporate governance guidelines.

In a move that would have been unthinkable just two months ago, Messrs. Disney and Gold also expressed their confidence in Disney Company CEO designate Robert Iger's leadership. The two went on to acknowledge outgoing Disney CEO Michael Eisner's contribution to the company over the past 21 years.

While neither side would comment on the tightly worded statement, it seems that CEO designate Iger is most likely behind the effort to bring this controversy to an end.

Iger has been credited with breaking up the Disney Company's highly reviled strategic planning division. Last week, the company named internet consultant Kevin Mayer to lead the newly reorganized strategic planning group and Marty Yuddovitz as the group's senior vice president.

Mayer and his new group will report to Disney CFO Tom Staggs. Staggs rose through the ranks at Disney from the previous strategic planning division and was a key figure in the now defunct Disney/Gold lawsuit.

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