Disney Critics Persist, Want Succession

By Jeffrey Goldfarb and Peter Henderson

Calstrs, the nation's third-largest public pension fund, also urged the creation of an unusual committee of investors that would monitor Disney's reform efforts, potentially giving Eisner's critics a way to keep the heat on.

"The board needs to move from Fantasyland to Tomorrowland," said Connecticut Treasurer Denise Nappier, who called on Disney's board to focus quickly on succession planning for both top management and directs.

Disney's shares rose slightly, a day after its board separated the roles of chairman and chief executive, which had both been held by Eisner. That move came after 43 percent of votes at Disney's annual meeting were cast against Eisner's reelection to the board.

The board retained Eisner, who has led the company for almost 20 years, as chief executive and said it supported him unanimously.

Eisner was replaced as chairman by George Mitchell, previously Disney's presiding director, who polled a 24 percent opposition vote at the meeting.

Nappier stopped short of calling for Eisner's or Mitchell's ouster, saying the board had put itself in an untenable position by not looking for replacements ahead of the vote.

"They were really caught with their pants down," she said. "You can't replace somebody with nobody, so I'm not sure they had many options," she added, saying Mitchell could prove to be a place holder while the board looked for a new chairman.