Abstract

The case discusses the governance problems at Disney. In late 2003, Roy Disney and Stanley Gold, both of whom were directors at the company resigned from the board in protest against the bad governance practices at Disney. They alleged that CEO Michael Eisner ran the company like a ‘personal fiefdom’ and that the board was only a rubber stamp to his decisions. The case looks into this allegation and studies a few instances which support the fact that Disney did not conform to the principles of good corporate governance. It also discusses the future of Disney in the context of the allegations of bad governance and the bid by Roy and Gold to oust Eisner from the company and install a new board.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Importance of good governance, especially in large companies.

Keywords

Governance problems, Disney, 2003, Roy Disney, Stanley Gold, directors, bad, governance practices, CEO, Michael Eisner, personal fiefdom, rubber stamp, conform, future