Facebook Inc.’s COO Sheryl Sandberg and Twitter Inc.’s CEO Jack Dorsey have decided to not seek their reelection to the board of directors at Walt Disney Co. due to an increasing number of conflicts of interest that exist between the media behemoth and the technology firms, said Disney on Friday.
Disney has decided to move heavily into delivery online of its television shows, as well as movies as viewers are abandoning the traditional cable package accounts. Disney had at one time even looked into possibly acquiring Twitter. In addition, Facebook and Twitter are attempting to attract more people to their video content available on their platforms.
Disney released a statement that said due to the evolving business were are experiencing and the businesses Sandberg and Dorsey work with, it has become much more difficult for the two to avoid conflicts when it relates to matters for our board, and therefore the two will not take part in a reelection.
Orin Smith the lead independent director who is the former CEO at Starbucks, will also be leaving the board of Disney due to rules that call for retirement at 74, said the company. Former Vice Chairman at Seagram Company Robert Matschullat is departing as well due to the term limit of 15 year.
The departures will take affect during March which is the time the annual meeting for Disney is held, when shareholders are to be asked to re-elect 10 board members. The ten include General Motors CEO Mary Barra, CEO of Nike Inc. Mark Parker, and CEO of Oracle Safra Catz, whose December election to the Disney board becomes effective February 1.
The board will then select its new lead independent director at its first meeting following the annual shareholder meeting, said Disney.
Disney disclosed as well on Friday that its compensation for CEO Roger Iger fell by 17% during its fiscal 2017 to just over $36.3 million. A smaller cash bonus was awarded to Iger due to there being an absence of growth during the fiscal year that ended September 30, showed data in one of Disney’s regulatory filings.
The cord cutting phenomenon in the cable television industry has hit many of the cable providers who battled against the streaming services such as Netflix to keep subscribers.
When asked, representative for both Twitter and Facebook declined to make a comment.