Disney: Cooling down...

Burbank, California, July 11: Incoming Walt Disney Co chief executive Robert A. Iger and rebel shareholder Roy E. Disney declared a truce on Friday, the most dramatic sign yet that the company’s new boss is committed to sweeping aside the ill will that festered under predecessor Michael Eisner.

The agreement brings to a close one of the nastiest executive-suite dogfights in recent corporate history, one that led last year to Eisner being stripped of his chairmanship.

Disney and long-time lieutenant Stanley P. Gold, both former directors, agreed to drop a lawsuit alleging that the selection process leading to Iger’s promotion was “a sham”. In return, Roy Disney will be given the honorary title of director emeritus, a position that carries no voting power nor rights to attend board meetings.

Regarded by many as the caretaker of his uncle Walt’s legacy, Roy Disney will be given a consulting contract and an office on the firm’s Burbank lot. The entertainment giant took note of Roy Disney’s “long-time devotion” to the company.

Gold and Disney, for their part, expressed confidence in Iger’s leadership and gave a nod to Eisner’s contributions to the company.

Iger: Brokering peace

The pact comes on the heels of Iger’s dismantling of Disney’s powerful strategic planning department, widely viewed by upper management as Eisner’s tool to exert control over virtually every aspect of the Disney empire. Iger, who was named CEO-elect in March after serving as Eisner’s second-in-command, was applauded inside the company for acting swiftly to resolve a problem that was hurting executive morale.

Although he does not formally take the reins until October 1, Iger is silencing critics who said he lacked the backbone to steer a new direction for a company over which Eisner had cast an imposing shadow. During his 21-year tenure, Eisner was lauded for his creative decisions, but criticised for letting personal feuds interfere with the operation of the company.