Trouble in the 'Magic Kingdom': Governance Problems at Disney





Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

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.

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Issuess

The case is structured to achieve the following teaching objectives:

  • Practices at a major media conglomerate
  • Importance of good governance to maximize shareholder benefit, especially in large companies
  • Implementation of new governance norms at a large media company and the credibility of these norms

Contents
Disney Directors Resign
Background Note
New Governance Norms
Instances of Bad Goverance
The Future of the Magic Kingdom
Exhibits

Keywords

Andrea Van de Kamp,Richard Koppes,Mickey Mouse,Silly Symphonies,Flowers and Trees,Snow White,Snow White,Millstein,Herbert Denton ,Kathy Styponias,Disney's Performance,Governance problems, Disney, 2003, Roy Disney, Stanley Gold, directors, bad, governance practices, CEO, Michael Eisner, personal fiefdom, rubber stamp, conform, future

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