ANAHEIM, Calif. (AFX) - It's a less confrontational, more candid world at Walt Disney Co. if the company's annual meeting Friday was any indication.
In his first shareholder gathering as Disney's chief executive, Robert Iger seemed to win over a smaller, less divisive crowd that gathered just a few blocks from what the entertainment giant often dubs the 'happiest place on earth' - the venerable Disneyland.
For this year at least, Disney's congregation was the happiest annual meeting on earth, in contrast to gatherings from the last few years when executive strife abounded. Amid Disney cast members dressed as many of the company's cartoon characters, shareholders seemed pleased, particularly when Iger said he saw double-digit earnings growth for the company at least through 2008.
In past years under former Chief Executive Michael Eisner the company was more guarded in its comments. On Friday, Iger seemed willing to mix candor with charm as he addressed the crowd. One shareholder asked Iger whether he would consider adding a third 'gate,' or theme park, next to Disneyland and the troubled California Adventure, which opened in 2001.
'We're still working to assure our second gate is successful,' Iger said, referring to California Adventure. 'In the spirit of candor, we have been challenged.'
Disney often has been criticized for shortchanging the facility when it was built, leaving park goers unenthusiastic. It and the company's European park are considered the least successful in the company's chain.
Whether Iger will be able to generate interest in the park, as well as tackle other potential problems remains to be seen. But it seems clear that the new Disney chief's strategy thus far is sitting well with investors, as well as past critics.
Two years ago in Philadelphia, the company's fortunes were in doubt as Eisner was embroiled in a shareholder revolt led by Roy Disney, nephew of the company's namesake and founder. He and partner Stanley Gold persuaded nearly half of all Disney shareholders to withhold their support for Eisner, ultimately forcing the board to remove him as chairman.
At last year's meeting in Minneapolis, tensions remained high as the question of Disney's top-level executives remained in doubt. Shortly after, Eisner stepped down as chief executive.
On Friday, Roy Disney - now director emeritus at the company - and his wife, Patty, were sitting peacefully amid board members. They and others in the audience seemed pleased to hear what Iger had to say.
With Disney's recent acquisition of animation partner Pixar , Iger made animation the focus of his address. Leading off with a reference to the recent acquisition of 'Oswald The Lucky Rabbit,' a forerunner to Walt Disney's Mickey Mouse, Iger later said animation was critical to the company's fortunes.
In recent years, only Pixar's contributions such as 'The Incredibles,' 'Finding Nemo' and 'Monsters Inc.' have provided Disney - which distributed those films - with bona fide hits. Disney's in-house efforts such as 'Treasure Planet' and 'Home On The Range' have met with lukewarm receptions at best.
'For this company - and for our shareholders - there's nothing like a great Disney animated feature,' Iger said. 'It's our biggest wave-maker and its ripple effects can be profound; they can be felt across all of our businesses. Animation is not just our legacy. It is vital to this company and its future.'
He then turned over the podium to Pixar's John Lasseter, who will become Disney animation's chief creative officer and principal creative advisor at the company's 'Imagineering' unit, the group that designs Disney's theme-park rides.
'I promise you we will make films that entertain you the moment the lights go down,' Lasseter said. 'We're making Disney the one place you have to work (as an animator).'
As he addressed the California Adventure question, Iger said he would work with Lasseter on developing new rides for the park. Lasseter suggested in his address that the company simultaneously develop rides to go along with film releases.
Disney shareholders, many of them local residents and some of them company employees, seemed largely content with the company's direction thus far.
'Bob's got us on the right track now,' said Kathy Brown, who works at Disney's ABC Network. 'I'm not sure Michael knew what he was doing.'Brown was at the meeting with Kay Lynn, who works in Disney's corporate offices. Echoing Iger's call for candor, Lynn said she liked the Pixar acquisition but was concerned what the future of the deal might hold for the company. She says other than Lasseter and other key Pixar executives, there are few assets.
'It's real iffy,' Lynn said. 'It looks good on the outside.'
Lynn added, however, she'd like to see Pixar Chairman and Chief Executive Steve Jobs take the chairman's role. Current Disney Chairman George Mitchell is expected to step down at year's end.
Others said the company's direction seemed encouraging but they wanted to be sure.
'If I see that the direction is improving, I will consider buying more shares,' said shareholder Mike Baker.
And shareholders seemed content with Iger's response on a touchy subject, whether the company should put 'Song of the South' out on video. One shareholder said the company should consider it, and was backed with applause.
Iger said the company has discussed the issue and he recently screened the film, a touchstone for controversy on its portrayal of African Americans. He said it wasn't a good idea for the company to release the film.
'I thought it was quite possible people wouldn't consider it in the context it was made,' Iger said, to a smattering of applause.
If there was going to be any controversy at this meeting, it was whether Mitchell should have been re-elected for the current year, but shareholders voted to keep Mitchell and the company's other 12 directors by at least 94%, Disney said in a release. This story was supplied by MarketWatch. For further information see www.marketwatch.com.