COMPANY TOWN : Eisner Promotes Longtime Aide
Walt Disney Chief Executive Michael Eisner named operations chief Sanford M. “Sandy” Litvack, long his de facto No. 2 executive, a vice chairman of the company.
Sources called the promotion more symbolic than anything else. In addition to formally recognizing Litvack’s role, they said, it also is aimed at sending a signal to outsiders that Litvack has Eisner’s ear and enjoys considerable authority at the firm.
Litvack becomes Disney’s second vice chairman. The other is Roy E. Disney, nephew of the late Walt Disney.
Still, the move took many Disney observers and insiders by surprise, leading some to speculate that it now precludes, for a while, Eisner’s naming of an executive as his second-in-command.
Eisner has been under pressure to improve Disney’s performance in the wake of sagging earnings and a sluggish stock price. He continues to downplay the need for a company president in the wake of the departure of Michael Ovitz from that job nearly three years ago.
Litvack, 63, is older than Eisner and is not considered a candidate for the top job at the company.
Some Disney insiders denied that the Litvack appointment is designed to send a signal about the chances of naming a president in the future.
“Michael wanted to recognize the importance of what Sandy has been doing. It’s really nothing more than that,” company director Ray Watson said.
From an operating point of view, Litvack’s appointment seems to maintain the status quo. Chief Financial Officer Thomas Staggs and Disney strategic planning chief Peter Murphy will continue to report to both Eisner and Litvack, while the company’s division heads continue to report directly to Eisner. The rest of the corporate staff continues to report to Litvack.
Litvack, a longtime lawyer who served as the Carter administration’s top antitrust attorney, joined Disney in 1991 as general counsel. His role at the company grew following the death in 1994 of then-Disney President Frank G. Wells in a helicopter crash. In 1995, he joined Disney’s board.
Litvack has a reputation as a tough executive and negotiator. Earlier this year, he took over Disney’s defense in a high-profile lawsuit brought by former studio chief Jeffrey Katzenberg shortly before the case was settled.
