Disney Filing Reveals More Director Links

Walt Disney Co., which has pledged to be more open with investors, on Wednesday revealed in a Securities and Exchange Commission filing a more extensive list of business relationships and expenses involving its directors.

Separately, Disney warned in the filing that it might have to write down a $114-million investment in aircraft leases if UAL Corp.’s United Airlines files for protection from creditors in U.S. Bankruptcy Court.

The disclosures about directors come one day after Disney revealed an SEC inquiry on whether it should have disclosed earlier than August that four of its directors had relatives working for the company.

But Disney spokesman John Spelich said the filing was driven by Disney’s stepped-up efforts to provide more disclosures to shareholders and improve its corporate governance.

“This is consistent with our policy toward complete transparency,” Spelich said.

Disney this year hired noted corporate governance consultant Ira Millstein, who has recommended sweeping changes that Disney is now adopting to make its board more independent and provide better disclosure.

New disclosures Wednesday included a leased car and driver as well as office and secretarial expenses worth $268,000 provided to Thomas Murphy, who was head of Capital Cities/ABC when Disney bought it in 1996. A firm affiliated with Vice Chairman Roy E. Disney received $623,782 for use of a jet when it was hired for company business.

A company owned by Eugene Bay, father-in law of Disney President Robert Iger, received $69,892 in sports marketing consulting fees from Disney’s ESPN, although the filing notes that the relationship dates back to 1990, before Iger married his wife, Willow Bay.

The filling also notes that a $5-million installment contribution toward building the Walt Disney Concert Hall was made through the Performing Arts Center of Los Angeles. Director Andrea Van de Kamp is chairman of the center and was a director of the concert hall but was not a member of Disney’s board when the original $25-million pledge was made, according to the filing.

Disney also disclosed it no longer uses a law firm with ties to another director, former U.S. Sen. George Mitchell.