Advisory Firms Are Split on Disney Chairman

Two leading investor advisory firms have split on the question of whether Walt Disney Co. Chairman George J. Mitchell should be reelected to the board at the company’s annual meeting next month.

In a report issued Wednesday, Glass Lewis & Co. recommended that Disney shareholders withhold their votes for Mitchell but approve the 12 other directors.

Glass Lewis, which commended the board for making strides to improve corporate governance and director independence, chided Mitchell for staying on this year after earlier saying he would step down. It also criticized him for his handling of the search for Michael Eisner’s replacement last year as chief executive.

“The report is a disservice to Disney shareholders because the recommendations are based on fiction and not fact,” the company said in a statement.

The report was generally favorable to Eisner’s successor, Robert Iger, lauding him for “a number of key strategic moves that may move Disney in the right direction.”

Institutional Shareholder Services recommended last week that all Disney directors, including Mitchell, be reelected.

Mitchell told the firm that he planned to leave the board no later than Dec. 31. He said he agreed to stay on this year to help ease Iger’s transition and to avoid having to bring in a new chairman at the same time, the firm said.