How Disneys CEO Turned Corporate Governance - Assignment Example

One of the notable characteristics of Eisner is that he emulates a dictatorial leadership style. For example, he consolidated his power by isolating board members in order to weaken them (James 88). Similarly, Eisner embarks on stripping the directors of their functions once they seem to ask questions regarding his leadership techniques. Based on the high compensation that Eisner is exposed to and the conflict of interest within the board of directors, the CEO seems not to provide good leadership strategies that may jeopardize the operations of Disney.

Question 2

Walt Disney Company's financial position is negatively affected by the management practices adopted by Michael Eisner. Instead of paying the shareholders significant dividends, the CEO only increases his compensation at the expense of the shareholders. As a result, Walt Disney is viewed as a company that does not engage all the stakeholders in its activities despite the quality products it produces. In terms of internal business processes, the CEO seems to interfere not only with the business activities but also with the management. By not allowing directors to undertake their duties freely, the CEO hinders business processes thus affecting the profitability of the company. As indicated by a balanced scorecard, a key perspective is learning and growth. This covers the way a company innovates, creates value, and improves its performance. Even though the company has adopted modern designs in its premises, through the support of Robert Stern, one of the directors, Walt Disney does not provide ample opportunities that would allow the directors to come up with new products. In addition, the company shares seem to perform poorly since Eisner took the office as the CEO.