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News > Walt Disney Company CEO Michael Eisner sends letter to
board of directors praising Iger selection
Disney News
Press Release
Walt Disney Company CEO Michael Eisner sends letter to board of directors
praising Iger selection
On March 13, 2005, Michael Eisner, Chief Executive Officer of the
Walt Disney Company, sent this letter to the members of the Board of
Directors regarding its selection of Robert Iger as the next Chief Executive
Officer of the Walt Disney Company:
After nearly 21 years as CEO of The Walt Disney Company, it is with
a wide range of positive emotions that I welcome the Board of Directors'
announcement of my successor, Bob Iger. As the Board has wisely concluded,
Bob is an extraordinary executive with 30 years of experience in the
entertainment industry and is uniquely qualified to take charge of this
incredible company. As president during the past five years, he has
provided steady and inspired leadership as he helped steer Disney through
a storm of challenges, bringing the company to its current thriving
condition in the calm waters and bright skies of financial and creative
success. As you well know, last year alone, we delivered earnings per
share growth of more than 60%, resulting in record earnings and free
cash flow. This fiscal year, we will deliver double digit earnings growth
and again post record-high earnings. From a shareholder perspective,
Disney has outperformed the other three major media companies over the
last five year, three year, and one year periods.
So, it is with a considerable amount of satisfaction and even pride
that I approach the end of my term as CEO of this company. There is
a tinge of sadness added to these emotions, similar to the feeling one
experiences at the end of a great day at Disneyland as one pulls into
the station after the final E-ticket ride.
And what a ride this has been. In 1984, the company had a $2 billion
equity market cap. Today, it is nearly $60 billion. Revenues were $1.5
billion; in 2004, they surpassed $30 billion. Net income was $98 million;
last year, it was more than $2.3 billion.
Our creative achievements around the world in the fields of film, broadcast
and cable television, consumer products and theme parks have been exceptional,
driving compound annual returns for Disney stock since 1984 of 17.3%,
versus the S&P 500's 13.0%. More recently, despite that storm of
challenges, Disney investors have been rewarded with a 6.5% annual return
during the past three years, compared to the S&P 500's 3.0%, and
in the last year with 11.6% versus the S&P's 10.3%.
Disney's remarkable financial and creative growth has been achieved
by a phenomenal management team. We currently have in place a group
of executives who are focused, able and experienced. They have kept
the company moving forward and have not been distracted by the combustion
of world events or the noise of Hollywood gossip. These are seasoned
individuals who have the vision to set lofty goals and the leadership
to achieve them. They know the receptivity, the affection and the respect
the Disney name and products command from continent to continent. We
can count on them to continue to distribute creativity throughout the
world, intellectual excellence throughout the world, ESPN and Disney
throughout the world. Hong Kong Disneyland (our front door to China),
opening on Sept 12th.of this year, along with the resort around it,
is but one example.
Bob will now continue the momentum of the company and put his own visionary
imprint on it as he launches Disney into the future. As I have told
Bob and all of you, I am available to assist in a seamless and orderly
transition. Although I intend to remain as a Disney director until the
annual meeting of 2006, I will not make a request of the Board to nominate
me for an additional term nor will I seek the chairmanship of the company
after the retirement of Senator Mitchell.
This brings me to yet another emotion I feel as the transition begins
- excitement, excitement about a book I wrote called "Camp,"
which gets released on Father's Day and perhaps will lead to the camp
of my youth, Keewaydin, hiring me as a counselor again, excitement that
my oldest son Breck got engaged to Georgia Irwin yesterday just four
weeks before "Sahara," a film he directed, gets released by
Paramount Pictures, excitement about all the possibilities I see before
me. As much as I have loved nearly every minute of my tenure at Disney,
two decades is enough time to spend as a chief executive officer of
one company. I'm ready to move on and climb new mountains, while always
being available to help Disney in any way I can. Beginning October 1,
I expect to clean off my hiking boots, re-stock my Mickey Mouse backpack
and start surveying some of the other peaks that are on the horizon.
I thank members of our management team, our entire cast, our shareholders,
and the men and women who serve or have served on our Board for their
enthusiasm and support for The Walt Disney Company. And mostly I thank
Walt Disney for bringing to us a culture and a mouse.
