More Funds Line Up Against Disney's Eisner

LOS ANGELES - Michael Eisner is feeling the heat.

The embattled CEO of The Walt Disney Co. flew to Ohio Thursday to convince officials of five public pension funds that they should vote for his re-election to the company board.

Funds in California, New York, Connecticut, Massachusetts and New Jersey control nearly 30 million Disney shares already have stated they will withhold their votes - the equivalent of a "no" vote.

Eisner's re-election isn't in doubt because he is running unopposed and many large mutual funds and other institutional shareholders are likely to vote for him.

But a large protest vote at the March 3 annual shareholders meeting in Philadelphia would be unsettling for the Mouse House and for Eisner, whom critics blame for a long slump in Disney profits.

Ex-board directors Roy E. Disney and Stanley Gold have waged a three-month campaign against Eisner and three other Disney directors.

As a sign of how seriously the company is taking the votes, Eisner and Robert Matschullat, chairman of Disney's audit committee, flew to Columbus, Ohio, Thursday to meet officials from five state pension funds that will decide by Monday whether to support him.

The state's main retirement fund controls 4.6 million Disney shares.

Disney issued a statement Thursday repeating earlier estimates of double-digit earnings growth through 2007 and 30 percent growth this year.

"Disney's record of building value is indisputable and it is a well-managed company with world-class governance and a laser-focus on building shareholder value," the statement read.