Walt Disney Co's board said on Thursday it has made permanent the policy to separate the roles of chief executive and chairman, responding to criticism and requests from shareholders.
The board amended corporate governance guidelines to read, "the chairman of the board shall be an independent director unless the board concludes that the best interests of shareholders would otherwise be better served," and to require a written explanation in proxy materials if the two jobs were held by a single person.
Source: Reuters
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LOS ANGELES (Reuters) - Walt Disney Co's board said on Thursday it has made permanent the policy to separate the roles of chief executive and chairman, responding to criticism and requests from shareholders.
The board amended corporate governance guidelines to read, "the chairman of the board shall be an independent director unless the board concludes that the best interests of shareholders would otherwise be better served," and to require a written explanation in proxy materials if the two jobs were held by a single person.
The board stripped the chairmanship from Chief Executive Michael Eisner after a strong protest vote against him at the March 2004 annual meeting, but directors had resisted pressure from shareholders to make separation of the jobs company policy.
Connecticut Treasurer Denise Nappier, who runs the state's pension fund, praised the board's move and dropped her shareholder proposal for Disney's 2005 annual meeting that urged such a policy.
"This represents a significant victory for Disney shareholders and corporate governance advocates, and is certainly in the best interest of the company," Nappier said in a separate statement.
