Two quit Disney board in power struggle

A simmering feud for control of Walt Disney has boiled to the surface as two prominent directors quit the board to fight for …

A simmering feud for control of Walt Disney has boiled to the surface as two prominent directors quit the board to fight for the removal of chairman Mr Michael Eisner in a move other directors have called a "destructive course".

Mr Roy Disney, the 73-year-old nephew of cartoon pioneer Walt Disney, resigned from the board on Sunday, and his long-time ally Mr Stanley Gold did the same yesterday.

They vowed to work with shareholders to pressure the board into removing Mr Eisner for poor performance in the past seven or so years.  The two said they would first hold extensive talks with shareholders they had been barred from contacting while on the board.

Mr Gold said that was too early to say whether he and Mr Disney would nominate members to the board, or to name a potential new chief executive, although he said he wanted an entertainment industry executive to replace Mr Eisner, perhaps from within the Disney corporation.

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The move by Mr Disney, the last Disney family member to serve as a director, was reminiscent of his decision nearly 20 years ago to resign and then launch a management shake-up in which he and Mr Gold recruited Mr Eisner.

The relationship between Mr Eisner and Mr Disney has foundered in recent years as the company struggled to maintain earnings amid the weak economy.

While Mr Disney controls about 17 million Disney shares, less than 1 per cent of the outstanding stock, his status as son and nephew of co-founders Mr Roy Disney and Mr Walt Disney, respectively, commands a certain respect.

Still some investors were doubtful whether Mr Disney's and Mr Gold's resignations would win them widespread support.

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