Disney Stockholders Reject Auditing Reform Plan
On first announcing the plan – which was subject to shareholder approval, Disney noted that the decision was no reflection on auditor Pricewaterhouse Coopers – to which it paid $9 million in auditing fees, and $32 million in other fees – but an acknowledgement that such arrangements could constitute a conflict of interest, the WSJ reports.
Disney originally opposed such a proposal – originally put forward by the investment arm of the union pension fund United Association, but reversed its position.
Mass Proposal
The United Association is pursuing such shareholder proposals at about 30 companies – Disney was the first to bring the matter to a vote. But despite the company’s support of the proposal, it was rejected by about 54% of the voting shareholders.
After the proposal’s defeat was announced, Disney
Chairman and Chief Executive Michael Eisner said the
company would “proceed as if it had been” passed. A formal
plan spelling out how Disney will separate the functions is
expected later, according to the report.
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