Crisis at Walt Disney

The Walt Disney entertainment empire is in crisis today after a massive shareholder revolt.

A record 43 per cent of Disney shareholders voted against the re-election of Michael Eisner who has led Disney for the last 20 years. Disney is fighting a hostile $60 billion takeover bid from US cable television group Comcast and there has been mounting anger at the way the company was being run.

The vote at Disney's annual meeting in Philadelphia is the worst drubbing any US boss has received from shareholders. Mr Eisner, 61, who has been paid more than $1billion dollars over the last two decades, was forced to resign as chairman although he stays on - for the time being - as chief executive of the films, television and theme parks giant. The new chairman is 70-year-old former senator George Mitchell who was a leading figure in the Northern Ireland peace process.

Criticism of Mr Eisner has been spearheaded by Roy Disney, the 74- year- old nephew of founder Walt, who last night told shareholders that they must "install new management".

Mr Eisner responded at the packed meeting by saying that Disney was "doing great at a contentious time".

Sean Harrigan of Calpers, the fund manager which controls most of California's public pension money, said: "The discontent is too wide and way too deep in the marketplace and it has led us to believe that Eisner must go."