Disney board splits chairman, CEO positions

PHILADELPHIA - The Walt Disney Company's board has voted to strip Michael Eisner of his chairman's post while retaining him as CEO.

The decision came only hours after shareholders delivered a stinging rebuke by withholding 43 percent of their votes for his re-election to the board.

Disney directors voted unanimously to split the chairman and chief executive duties and make board member George Mitchell the company's new chairman.

At the same time, they voiced their continuing approval of Eisner's management and the company's strategy.

The change was effective immediately.

The action curbs Eisner's control of the company and satisfies the concerns of corporate governance groups who had called for the change. But it won't satisfy the company's most vocal critics who have vowed to continue their fight to oust Eisner.