Robert Iger will succeed Michael Eisner as CEO of Disney, effective September 30. I have been spending the day reading about the Disney stockholder litigation in preparation for a presentation on Thursday, so this is a timely update.

According to the W$J, Meg Whitman interviewed for the position last week, but dropped out "because she felt the Disney board was dragging its feet and appeared to be set on Mr. Iger." Also, the Iger appointment prompted this response from dissident ex-directors Roy Disney and Stanley Gold: Iger's appointment "is yet another example of this board's breach of faith. The pledge made by Chairman Mitchell to conduct a bona fide search was a ruse...Mr. Mitchell's approach to good governance is no better than a carny at the fair, enticing words but in the end the game is rigged."

Do Roy Disney and Stanley Gold understand irony? They accuse the current directors of again breaching faith, but the breach of faith currently being litigated in the Delaware courts -- namely, that in 1995 the directors of Disney agreed to pay Michael Ovitz an outrageous sum in the event that he was terminated from his position as President of the company -- occurred while Disney and Gold were on the board of directors!

By the way, if you were inclined to feel sorry for Michael Eisner, don't bother. His employment contract calls for annual post-termination bonuses of $6 million for three years.

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