Discussion Reply

I need a reply to a discussion. It needs to be 2-3 paragraphs and should have an in-text citation and should ask the fellow classmate a question at the end. Do not need a title page and only one was reference is necessary. Saving Disney pdf is attached.

Original Question:

Saving Disney

After reading the case Saving Disney from your HBP course pack, let’s discuss the independence of the Board of Directors during Eisner’s reign:

1. Do you think ousting Eisner was the right thing to do for the shareholders? What can be learned from the issues raised about the Board of Directors?

2. What do you think about the SaveDisney.com website – was it an effective way to encourage shareholder activism?

3. Do you think this is a good example of the need for a split in the roles of CEO and Chairman of the Board?

Need a reply to this student:

Hi Tameka!

Do you think ousting Eisner was the right thing to do for the shareholders? What can be learned from the issues raised about the Board of Directors?

I do believe that ousting Eisner was the right thing to do. I think that what Disney and Gold did should have been done a long time ago. The rampage that Eisner was on lasted too long. Eisner was in a position where his interest was more important than the shareholders. He made decisions that was not good for the shareholders and the board agreed because he had them in the palm of his hand. It seemed like the members of the board feared Eisner. A perfect example of this is when Disney lost their deal with Pixar and the board defended Eisner. The relationship between Disney and Pixar created some of the highest grossing moments for Disney.

Based on the issues that arose with Disney’s board it emphasizes the importance of the separation between the board and management. It depicted why board evaluations are important, and why there should not be any type of conflict of interest among board members.

What do you think about the SaveDisney.com website – was it an effective way to encourage shareholder activism?

I do think that the SaveDisney.com was a good way to get the word out about the initiative. It spread the message across the country and allowed people to voice their opinion and give support to a company that they loved. In the article Disney said “The volume of responses was tremendous……. Not only were we able to round them up and give them a voice”

Do you think this is a good example of the need for a split in the roles of CEO and Chairman of the Board?

I do believe that this a good example of why there need to be that separation between the roles of the CEO and the Chairman of the Board. Because Eisner held both positions, he was able to manipulate the board. He was serving his interest instead of that of the shareholders. In a corporation, that is a huge problem that portray ineffective corporate governance.

Beaulieu, N. &Zimmerman, A. (2005). Saving Disney. Harvard Business School. April 4, 2005. 1-34

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