Late in the evening of March 3 in Philadelphia, the Walt Disney Company's board decided unanimously to have CEO Michael Eisner step down from his position as chairman, after 43 percent of their shareholders opposed his reelection.

The board felt pressure to curtail Eisner's 20-year sovereignty over the company, so although Eisner was allowed to maintain his position as CEO, he had to forfeit his chairmanship. George Mitchell, the company's current Director and a former senator from Maine, has been designated to replace Eisner; a move intended to placate investors displeased by the declining Disney stock.

Douglas P. Brush, Professor of Public Opinion at Marist College, said that Eisner's forced resignation, unlike Martha Stewart's decision to step down to keep her namesake company financially afloat, was to pacify disgruntled shareholders.

"The general public could care less about whether or not Eisner stepped down, to them its simply a spectator sport," he said. "The most important audience for Disney's board to consider are those that invest in the company."

The unprecedented "no confidence" shareholders' vote was a strong indication that a change has to be made in the company's governance, despite the board's confidence in Eisner as a leader. According to CNN.com, the board asserted in their statement that they valued the concerns of their investors.

"While there appear to have been a number of different forces at work in the shareholder vote, a significant message conveyed in the vote was in the area of governance," they said. "That is not to say that we view the vote as limited to governance issues alone. We are aware that some voted for an immediate change in management and in the board. However, taking all of these factors into account, we believe the action we have taken today is in the best long-term interest of the shareholders of the company."

The board also rejected a renewed proposal from Comcast Corp., affirming it would serve no purpose to reconsider an offer of $54 billion, which was previously rejected for too low a bid. To completely terminate Eisner's position in the company would be a risky move in the eyes of the board. Without an immediate successor to the CEO position, Disney would be more susceptible to annexation.

Despite their efforts to pacify investors by splitting the top positions, there are still heavy criticisms. Former board members Roy E. Disney and Stanley P. Gold, who have been waging a campaign against Eisner and the reigning board for substantial mismanagement, spoke to the shareholders regarding the inadequacy of the resolution, according to The New York Times.

"In essence, you have compromised your soul, lost your integrity," Gold said to Eisner and the board.

Shareholders voiced animosity over Eisner's apparent apathy towards their concerns. However, many were not satisfied by the choice of his replacement either. They, along with Disney and Gold, asserted that Marshall, who is a strong supporter and friend of Eisner, would not be any more successful in managing the company. The shareholders echoed this sentiment by withholding 24 percent of their votes for him.

According to The New York Times, shareholders trickled out of the meeting hall throughout the three hours of presentations put on by Disney executives, who aimed to regain the confidence of their investors in the company and it's management. Angela Stevens of Philadelphia, a shareholder, remarked on the disconcerting sight.

"It was really tough in there for Michael," she said. "It was like he was trying to be a host of a party and all the guests wanted him to leave."