Young Investors Share in the Fun Side of Business at Disney Meeting : Stockholders: Some would rather meet Goofy than make money. Unique dividends include a day at Disneyland.
When stockholders of the nation’s 24th-largest company gathered Tuesday, stock prices and proxy statements did not appear to weigh heavily on their minds.
For many at Walt Disney Co.’s annual meeting, the greater concern was whether they would get a chance to hug Goofy or to jab the Beast of the film “Beauty and the Beast.” Or they might have been wondering what new movie trailers they would be viewing.
Andrew Frank was typical. Six years old and the owner of two shares of stock, he proudly displayed the cover of his annual report, which had been personally autographed by the Genie, star of the animated movie “Aladdin.”
Andrew and sister Briana, 9, a fellow stockholder, were among hundreds of children at the Anaheim Convention Center for the meeting. In some cases, whole families were among the 8,000 in attendance. They were lured by the characters, a multimedia presentation that lasted more than an hour and, yes, free Disneyland tickets.
“They’re the stockholders,” said Sylvia Frank of Ventura, Andrew and Briana’s grandmother. “They brought me here.”
About 70,000 of Disney’s more than 800,000 stockholders own only one share. Many more, like Andrew and Briana, have only a few shares. The perks that go along with owning just a single share go far beyond the meager dividend checks they receive.
In the past, stockholders have been treated to free screenings of popular Disney movies after the annual meeting and have received free Magic Kingdom Club cards entitling them to discounts at Disney theme parks.
For the most youthful of those investors, hearing about corporate developments means squirm time until the fun starts. Some of those less glamorous business details Tuesday included:
- A projection that the company will not meet its goal of 11 million visitors this year at Euro Disneyland. Chairman Michael D. Eisner did note, however, that attendance at the park outside Paris exceeded 30,000 for the past couple of days, despite a winter snow. That was more than the number of visitors to Disneyland in Anaheim on the same days.
Perhaps in response to that announcement, Disney’s stock lost $2.375 a share to close at $43.25 Tuesday in heavy trading on the New York Stock Exchange. Some analysts at the meeting expressed surprise, however, at the price decline. “I didn’t hear anything that sounded negative,” said Craig Silvers of Crowell, Weedon.
- An update on the proposed Disneyland expansion in Anaheim. Eisner said that the $3-billion project, which would add an internationally themed park and row of resort hotels, depends on winning financial incentives from the state. “I think it’s possible,” he said of the likelihood that it will be built. “I would like to say it’s probable.”
- Rejection of a proposal to send quarterly reports automatically to thousands of shareholders whose stock is held by banks or brokerages. The company said that such a move would be too costly and that shareholders who want the information can receive it by submitting a request.
In an interview after the meeting, Eisner defended his annual salary of $7.4 million, which was in addition to $197.5 million worth of stock that he sold in December. Stockholders did not bring up the matter, he said, because they are polite and because his income is clearly tied to the company’s profits.
Some stockholders, however, did give Eisner an earful earlier about cutting back the perks that come with their shares. One woman won applause after she complained to Eisner and Disney President Frank Wells because no movie was shown at the meeting and no discount cards were distributed. Eisner explained that the company has done away with perks that it deems too costly.
The omission didn’t seem to bother Andrew Dobbs, 3, of Whittier or his cousin Leanne Macias, 7, of Whittier. Dobbs was a little fidgety before the meeting began but eager for what would come later. The youngster had, in fact, attended the annual meeting when it was in Anaheim two years ago.
“He was a year old, but he enjoyed it,” said Robin Dobbs, Andrew’s mother. The two children, she said, got their Disney stock as Christmas gifts.
Though the youngsters may not yet care about the size of their dividend checks, Robin Dobbs said, they are certainly of an age to enjoy the perk they received for showing up Tuesday: a free day at Disneyland.
Times wire services contributed to this report.
