The Board of Directors
One of the reasons our company is poised to take advantage of these limitless
opportunities before us is the Board of Directors of The Walt Disney Company.
It is in large measure thanks to the guidance of the board that our company has enjoyed such tremendous long-term success. From 1984 to the present, Disney's market capitalization has grown from $2 billion to $74 billion. During the 14 years from 1985 to 1998, our Board oversaw 20% annualized earnings growth and an average annual return on equity of more than 18%. And, as far stock performance goes, $1,000 invested in Disney at the beginning of my first fiscal year with the company, 1985, would be worth nearly $30,000 today.
Even during the "off" year we experienced in 1999, Disney continued to be one of the most profitable companies in the entertainment industry. And, as our chief financial officer Tom Staggs will be discussing, we are now seeing signs of a return to solid growth into the future.
The Disney board is a diverse group that reflects Disney's diverse audience. It is made up of seven business executives, three attorneys, two architects, one computer scientist, one actor, one journalist, one former United States senator and two educators.
The Board gives ongoing insights into the management of our company, offers assessments of strategic opportunities across all our business units and helps Disney find new ways to reach an even wider audience here in the United States and around the world.
Board Member Introductions
I would now like to introduce the members of your company's Board of Directors.
First, there's vice chairman Roy Disney. Roy has guided the renaissance of Disney animation since 1985 and has been the ultimate guardian of the legacy and tradition of this company that bears his family name.
Sandy Litvack last year was also named as vice chairman, having previously served as Senior Executive Vice President and Chief of Corporate Operations. Since 1991, Sandy has been a tireless partner in managing the growth of our company. Also here today is Sandy's wife, Judy.
Reveta Bowers is one of the nation's leaders in primary education. She heads the Center for Early Education in Los Angeles, an independent school for kindergarten through sixth grade, which has been singled out as a model for its innovative curriculum. Reveta helps us keep on top of the ever-changing needs and interests of Disney's youngest fans.
Judy Estrin is Chief Technology Officer and Senior Vice President at Cisco Systems. With her knowledge of advanced Internet projects, Judy is a key player in Disney's efforts toward becoming a leader on the World Wide Web.
Stanley Gold is President and Chief Executive Officer of Shamrock Holdings. Stanley is one of America's most dynamic business leaders who offers ongoing insights into the management of Disney.
Ignacio Lozano is the Chairman of the Board of the leading Spanish language newspaper in America, "La Opinion," as well as a former United States Ambassador to El Salvador. In his nearly 20 years on our Board, Nacho has offered consistent guidance throughout this period of tremendous change.
George Mitchell served in the United States Senate for fifteen years, retiring as Majority Leader in 1995. Since then, his stature as a statesman has only grown, most notably in his efforts to help bring peace to Northern Ireland. Whether it's negotiating with the government of China for our new theme park or assessing the impact of the latest telecommunications bill in Congress, George's experience and understanding are tremendous assets for the company.
Tom Murphy built Capital Cities/ABC from a single UHF TV station in 1954 into one of the top communications companies in the world. No one understands the evolving nature of broadcasting better than Tom, and his knowledge is invaluable during this time of revolutionary change in telecommunications.
Father Leo O'Donovan is president of Georgetown University, where he also holds an appointment as Professor of Theology. Father O'Donovan is a nationally recognized leader in higher education and his moral leadership helps to ensure that Disney constantly strives to meet the highest standards in everything we undertake.
Sidney Poitier is one of America's most beloved actors and directors, whose many awards include the Academy Award for best actor, the American Film Institute Lifetime Achievement Award and the Kennedy Center Honors. From his years as a performer to his work on behalf of children and civil rights, Sidney brings great depth and wisdom to the Board.
Irwin Russell is one of the nation's leading attorneys in the areas of management, arbitration and entertainment law. He has served the Disney Board tirelessly since 1985. Also here with Irwin is his wife, Sue.
Bob Stern is the founder and Senior Partner of Robert A.M. Stern Architects and dean of the school of architecture of Yale University. He has been instrumental in our company's creation of extraordinary entertainment spaces from Anaheim to Paris to Times Square.
Andrea Van de Kamp is chairman of Sotheby's West Coast, overseeing all business development for the world's leading auction house. Her background, which merges the best of the art world and the business world, makes her a particularly valuable member of Disney's Board.
Ray Watson is vice chairman of The Irvine Company, which is developing America's largest master-planned urban community, and previously served as chairman of the Disney Board. As well as being an expert in land management, Ray is also an expert on all things Disney and represents part of the continuity that has made the Disney legacy so powerful.
Gary Wilson joined our company in 1985 as executive vice president and chief financial officer. He is now chairman of Northwest Airlines, but continues to help Disney chart a course that will keep our fiscal bottom line healthy and strong. Gary...
I would like to introduce someone who is not an actual Board member, but is certainly an integral partner in my decision-making -- my wife, Jane Eisner.
There is one more Board member to introduce ... our newest member, Bob Iger, who will also be our next speaker. Bob joined Disney in 1996 when we acquired Cap Cities/ABC, where he was serving as president and chief operating officer. One year ago, Bob took on added duties as president of Walt Disney International, spearheading the reorganization of all of our overseas operations. This served to complete his Disney education. Last month he was named as president and chief operating officer of The Walt Disney Company as well as a member of the Board.
Before Bob comes up here to speak, I just want to say that I am privileged and honored to be able to work with all of the members of the Disney board. This is an extraordinary group of individuals, each of whom is a leader in his and her own right.