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Walt Disney's Nephew Leads Shareholder Revolt - 2004-03-02

One of the world's best-known entertainment companies, Walt Disney, faces an investors' revolt led by the nephew of its founder. Roy Disney is asking investors to send a message of "no confidence" in the company's chief executive, Michael Eisner, by withholding their votes during a key shareholders' meeting on Wednesday in Philadelphia.

Some state employee pension funds that control millions of shares of the company have said they will join the opposition to Mr. Eisner.

Roy Disney and his advisor, Stanley Gold, were once members of the company's board of directors and say that under Mr. Eisner's leadership, Disney stock has been under-performing the market as a whole and the media sector in particular.

In a newspaper commentary in the Financial Times they also accuse the Disney executive officer of refusing to brook criticism, nurture talent, or groom a successor.

Mr. Eisner's supporters say the company's stock price is recovering and is on track to grow well. He has led the company for two decades.

Some information for this report provided by AFP.