Disrespect Shown Disney’s Directors . . .
The Walt Disney Co. has earned the ignoble distinction of having one of the 25 worst boards of directors in corporate America.
That’s the conclusion of Business Week magazine, which in its Nov. 25 issue lumped the company in with 24 other laggards in its first-ever ranking of corporate boards.
Business Week dissed Disney for packing its board with insiders and friends--potentially a recipe for passivity and rubber-stamp decision-making. More than one-third of Disney’s board is made up of current or former employees. Other members such as architect Robert Stern have performed work for Disney, raising questions about their independence.
To come up with its list, the magazine asked nearly 300 large pension funds, money managers and board watchers to identify companies with the best and worst performing boards. Business Week then measured the companies that emerged against a set of guidelines set up by corporate governance experts.
Scandal-ridden Archer-Daniels-Midland won the booby prize for harboring the worst collection of directors in the nation. Experts labeled Campbell Soup’s board “mmmm mmmm good,” awarding its feisty, proactive members the title of top board in America.
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Marla Dickerson covers tourism for The Times. She can be reached at (714) 966-5670 and at marla.dickerson@latimes.com
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