Should Michael Eisner Step Down?

The Economist thinks so. Eisner has not done a good job of building up strong top management, and my guess is that he has surrounded himself with people who won't challenge him, which is why Disney still holds on to ABC when it should be sold.

Better luck may bring some relief, not least in higher theme-park attendances. But Disney faces severe strategic problems that Mr Eisner is struggling to get to grips with, not least because some are of his own making. Above all, his difficulties working with, and thus retaining, talented senior executives have gone from being an entertaining source of media gossip into a reason to ask serious questions about the quality of the firm's top management. These questions have become more pressing as investors and—or so rumour has it—some members of Disney's board ponder what may soon be the post-Eisner era.

The problem with successful CEOs is that when they start to lose their touch, they aren't ready to retire. I think The Economist is on the money with this one. Shareholders should be more vocal about Eisner's removal.

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