About a dozen years ago, a revolution took place at The Disney Company. Some people consider it the second time that Roy Edward Disney saved the company that his father and his uncle built by resigning from it.
Resigning was not something Roy took lightly or was done on an emotional whim. In both cases, he spent time trying to work with the parties involved to come to a reasonable solution. In both cases, the other people severely underestimated Roy's passion and perseverance.
While he looked very much like his uncle Walt, especially in his later years, he behaved in the quiet, unassuming manner of his father, for the most part. He never swaggered around as a celebrity nor flaunted his billion-dollar wealth. However, just like Walt and the elder Roy, he was stubborn, had a temper and never hesitated to stand up for what he believed in.
Roy E. Disney was first elected to the Board of Directors of The Disney Company in 1967, shortly after his uncle Walt died. In 1971, his father, Roy O. Disney, after opening Walt Disney World in Florida, suffered a stroke and died. Card Walker, Donn Tatum and Ron Miller took over running the company.
Shortly thereafter, Roy found himself shoved aside and he left his executive position with the company in 1977, but still remained on the Board of Directors with little hope of being more than just a figurehead in terms of any significant decision making.
However, the law firm Roy Edward had been using assigned him a new lawyer named Stanley Gold, who was as outgoing as Roy was reserved. It was Gold who determined that the Disney family was too dependent on the Disney Company—not only financially as the primary source of income, but also for such things as travel arrangements and accounting services.
So with Gold's assistance, a company named Shamrock was formed (named after the boat that Roy Edward raced at the time). Roy Disney was the chairman of Shamrock Holdings and Stanley Gold ran it as CEO. Basically, it was an investment company that managed Roy's personal investments and it did quite well.
Gold, who was fearful that Roy's family holdings were shrinking fast because of the poor performance of The Disney Company with the cost overruns on building Epcot Center and the lack of feature film hits, literally told Roy Edward: “We have to make a decision. We need to either get your money out of the company, or try to get new management in at Disney.”
Making matters complicated was the fact that the current management was being led by Walt's son-in-law, Ron Miller, the husband of Diane Disney.
Roy Edward immediately resigned from the Board of Directors in 1984, which sent waves through Wall Street that there was trouble in the Magic Kingdom. Gold and Roy Edward orchestrated a big investment from the wealthy Bass family of Texas, which formed an alliance with Disney stockholders that resulted in Ron Miller resigning and Michael Eisner and Frank Wells being installed as the new management team in 1984. Roy Edward returned in 1984 as vice chairman of the board, and head of the animation department.
Eisner had even considered dismantling the animation department since it was costly and time consuming, and there were enough classics in the vaults to re-release. It was Roy Edward who specifically requested being given the job of overseeing the animation department, and under his guiding hand, revitalized the Company with hits like The Little Mermaid (1989) and Beauty and The Beast (1991).
Supposedly, one of the reasons Eisner gave the position to Roy was that if the animation department collapsed as he expected, Eisner could always point that the failure came under the hands of a Disney.
Former Disney animation chief Peter Schneider stated in 2000 to a reporter that “the single-most important thing in the history of animation at the company was Roy Disney's persuasion in 1984 of then-president Wells to spend a mere $10 million on computer equipment to restore the animation quality lost through previous cuts. Not only did it restore colors and blushes, it also led to innovations in movement and forged the kind of style that distinguishes such films as Beauty and The Beast.”
Roy was also thrust into the role as guardian of Disney family traditions, and while his influence became more and more muted over the years, it was still enough for him to authorize the Disney Company to assist Leslie Iwerks on the book and documentary about her grandfather Ub Iwerks; to make sure that the Salvador Dali-Disney collaboration Destino (2003) was finally completed (despite Eisner's displeasure); and to insist the Disney Institute Animation Event continue (and providing a wonderful filmed introduction for the 2002 event written and directed by Jeff Kurtti about his family history and the importance of animation to Disney). Without fanfare, he instigated the restoration of Richard Williams' original version of The Thief and the Cobbler, rescued a metal box of important family papers lost for decades from his garage and donate them to the Disney Archives, and much, much more.
Roy E Disney sits on a bench with the statue of his father, Roy O Disney.
He quietly worked behind the scenes to support people and fund projects that might not have generated much profit for the Disney Company, but were the right things to do to preserve heritage, encourage innovation and keep the spirit of Disney alive.
Roy was a valuable resource and his presence on commentaries for the Disney Channel and special-edition DVDs, including a special series devoted to the True-Life Adventure films supplied a credibility that could not be achieved any other way. He was often trotted out to events to give them the Disney seal of approval.
In 2000, Michael Eisner told reporters that “[Roy's] been in the Walt Disney Company for 69 years, which is his age. His name is above the door. And he has a historical perspective and appreciation of the culture of the company that is unmatched.”
However, Roy could be quite sharp and combative in his comments when he felt that he needed to be. A former Disney animation chief once said, “There's no mystery about how Roy feels about anything.”
Roy didn't feel the Disney Company should have made Hunchback of Notre Dame because he felt the tone was too dark, and he didn't care for some scenes in The Lion King, like the sequence set to Elton John's “Can You Feel The Love Tonight?” and had no hesitation in letting people know those opinions. Nor was he shy in voicing his objection to closing the Disney Feature Animation Florida studio, among other things.
Eventually, Roy became so concerned about the direction Michael Eisner was taking the Disney Company that he created a “Save Disney” campaign that was instrumental in Eisner's resignation and the bringing in of Robert Iger as his replacement.
That chain of events started with the following letter:
November 30, 2003
Mr. Michael D. Eisner, Chairman
The Walt Disney Company
500 South Buena Vista Street
Burbank, CA 91521Dear Michael,
It is with deep sadness and regret that I send you this letter of resignation from the Walt Disney Company, both as chairman of the Feature Animation Division and as vice-chairman of the Board of Directors.
You well know that you and I have had serious differences of opinion about the direction and style of management in the Company in recent years. For whatever reason, you have driven a wedge between me and those I work with even to the extent of requiring some of my associates to report my conversations and activities back to you. I find this intolerable.
Finally, you discussed with the Nominating Committee of the Board of Directors its decision to leave my name off the slate of directors to be elected in the coming year, effectively muzzling my voice on the Board—much as you did with Andrea Van de Kamp last year.
Michael, I believe your conduct has resulted from my clear and unambiguous statements to you and the Board of Directors that, after 19 years at the helm, you are no longer the best person to run the Walt Disney Company. You had a very successful, first 10-plus years at the Company in partnership with Frank Wells, for which I salute you. But, since Frank's untimely death in 1994, the Company has lost its focus, its creative energy, and its heritage.
As I have said, and as Stanley Gold has documented in letters to you and other members of the Board, this Company, under your leadership, has failed during the last seven years in many ways:
- The failure to bring back ABC Prime Time from the ratings abyss it has been in for years and your inability to program successfully the ABC Family Channel. Both of these failures have had, and I believe, will continue to have, significant adverse impact on shareholder value.
- Your consistent micro-management of everyone around you with the resulting loss of morale throughout this Company.
- The timidity of your investments in our theme park business. At Disney's California Adventure, Paris, and now in Hong Kong, you have tried to build parks “on the cheap” and they show it, and the attendance figures reflect it.
- The perception by all of our stakeholders—consumers, investors, employees, distributors and suppliers—that the Company is rapacious, soul-less, and always looking for the “quick buck,” rather than the long-term value, which is leading to a loss of public trust.
- The creative brain drain of the last several years, which is real and continuing, and damages our Company with the loss of every talented employee.
- Your failure to establish and build constructive relationships with creative partners, especially Pixar, Miramax, and the cable companies distributing our products.
- Your consistent refusal to establish a clear succession plan.
In conclusion, Michael, it is my sincere belief that it is you who should be leaving and not me. Accordingly, I once again call for your resignation or retirement. The Walt Disney Company deserves fresh, energetic leadership at this challenging time in its history just as it did in 1984 when I headed a restructuring which resulted in your recruitment to the Company.
I have and will always have an enormous allegiance and respect for this Company, founded by my uncle, Walt, and father, Roy, and to our faithful employees and loyal stockholders. I don't know if you and other directors can comprehend how painful it is for me and the extended Disney family to arrive at this decision.
In accordance with Item 6 of Form 8-K and Item 7 of Schedule 14A, I request that you disclose this letter and that you file a copy of this letter as an exhibit to a Company Form 8-K.
With sincere regret,
Roy E. Disney
cc: Board of Directors
Roy established a “Save Disney” campaign with a fiery website to oust Eisner. Roy sincerely felt that the Disney Company was now emphasizing short-term monetary gains over long term goals and that the company was more interested in making money than making something good, and not realizing that investing in making something good would result in more money.
At the March 3, 2004 Disney Stockholders' meeting in Philadelphia, Roy addressed the audience:
“The Walt Disney Company is more than just a business. It's an authentic American icon, which is to say that over the years it's come to stand for something real and meaningful and worthwhile to millions of people of all ages and backgrounds around the world.To speak as Walt once put it, 'not to children but to the child in each of us'. We do this through great storytelling, by giving our guests a few hours in another world where their cares can be momentarily put aside, by creating memories that will remain with them forever.
“This is the core of what we've come to call 'Disney,' and, to my mind, our single-biggest need is to get back to that core. In my view, the essence of who we are lies in the business of film, especially animation, and the stories, characters, music and humor that well-made films generate. This is the engine that drives the train, and everything we do as a company basically flows from it.
“My Dad was quoted once as saying, 'It's easy to make decisions, once you know what your values are.' Unfortunately, our corporate values have been compromised in recent years. In large part, this is the result of a cynical management's belief that, in the absence of ides, the road to success is to cut back on everyone and everything that once made you successful, that you don't really need to give your guests value for money, that creativity and originality are luxuries you can no longer afford…that art and artists are commodities to be bought and sold like any other office supply. To me, the wrong-headedness of these beliefs is self-evident.
“I don't care what current management may tell you. The plain fact is, you can't fool all the people all the time. Nor can you succeed in our business by trying to get by on the cheap. Consumers know when they are getting value for their money, and they know when you're trying to sell them second-hand goods. So what kind of change do we need to make? It's really quite simple. We need to install a new management team, one that understands and believes in the enormously valuable legacy that's been entrusted to us. Speaking as someone with the last name of Disney, it is my firm belief that we are not a commodity. As long as we continue to believe in the power of creative ideas, then our best years still lie ahead.”
Not surprisingly, there was thunderous applause and Eisner's response was that what Roy had said was “fundamentally wrong” and that it “frankly displaces reason”.
Roy told me in 2004 as he tried to garner my support and the support of other Disney cast members and fans, “Our biggest saying around Shamrock is that we've gotta figure out how to keep the ball in the air, keep the heat on these people. They're nervous now. They didn't think I could do this.
“They're saying strange things behind our backs that we hear from third-party sources. It sounds like a bunch of 12-year-olds so I refuse to repeat any of it. One of the reasons I'm here where I am is because the Board of Directors was told never to speak about company business outside the boardroom without Michael Eisner's permission. I know an awful lot of people would say the same things I'm saying now if they thought they could.”
In fact, Eisner was stripped of his chairmanship in 2004 when it turned out that 45 percent of the shareholders had withheld their votes to re-elect him. It was later revealed that 72.5 percent of cast members voted against Eisner. But he was not removed as chief executive.
This action only intensified Roy's efforts and, as more criticism was directed at Eisner, he announced he would resign September 30, 2005, the end of the fiscal year and a full year before his contract ran out.
In July, Roy and the Disney Company agreed to “put aside their differences” with Roy rejoining the company as a non-voting Director Emeritus and consultant and shutting down his inflammatory website on August 7, 2005.
In the formal press release from July 8, 2005, it stated: “In putting aside their differences, the Company noted Mr. Disney's long time devotion to the Company and welcomed the reestablishment of a relationship with him and his family. Messrs. Disney and Gold expressed confidence in Mr. Iger's leadership, and, as Mr. Eisner retires after 21 years with the Company, they acknowledged his contribution to the Company over the years.”
Roy passed away of stomach cancer (he was a heavy smoker all his life) on December 16, 2009 at the age of 79 and was cremated with his ashes scattered over several different areas of the Pacific Ocean and the top of Diamondhead in Hawaii. Unfortunately, many of the projects that he had supported and were in the works were then quietly abandoned.
At the time, Bob Iger sent out the following statement to cast members:
“Roy not only helped to keep the legacy alive, but he also embraced new technologies, and gave the filmmakers the tools they needed to tell their stories in new and exciting ways. He encouraged talent, and loved working with the creative community. And they loved working with him.”
When I asked him why he always took such drastic action when he was concerned about what was going on at the Disney Company, he told me, “When you name is on it, you have to be passionate. The first time, in the 1970s, I just felt creatively the company was not going anywhere interesting. It was very stifling. They were ignoring my complaints that we needed to focus on the film division and produce some good films.”
Even Diane Disney Miller, who didn't particularly care for him because of his involvement in removing her husband from the company, softened her opinion in later years when he generously donated to the Walt Disney Concert Hall and Michael Eisner didn't.
It was just part of Roy Edward's style that if he stuck around long enough people would recognize that he was a nice, decent person and his heart was in the right place.
Next time, an excerpt of an interview I did with Roy in March 2004 talking about his family and growing up a Disney.
