Disney to Review Hiring of Board Kin

Walt Disney Co. said it is reviewing whether employing relatives of its board members complies with proposed federal rules.

The company also filed sworn statements from Chief Executive Michael Eisner and Chief Financial Officer Thomas Staggs certifying the accuracy of the company’s financial reports. A new Securities and Exchange Commission rule requires such certification by Wednesday.

Disney said in a regulatory filing that four of its independent board members had relatives who were employed by the company last year, which might not be allowed under rules proposed for independent directors. The rules proposed by the New York Stock Exchange would not consider a director independent if a relative had worked with a company in the last five years.

The company said that children of board members Reveta Bowers, Stanley Gold and Raymond Watson were employed by Disney in various divisions in fiscal 2001.

Jennifer Gold works in the consumer products division and Raymond Watson is employed by the Disney Channel cable television network. Craig Bowers has since left a position in Disney’s Internet group.

The company also said the wife of board member John Bryson is employed by the Lifetime cable network, in which Disney holds an indirect 50% interest.