Monday, September 12, 2005
Few contracts are more typical of long-term relational agreements than the contract between a corporation and its Chief Executive Officer. The relationship, rather than the letter of the agreement, tends to become important -- as illustrated by the recent controversy and Delaware Supreme Court decision in the case of Michael Ovitz and Disney.
The Disney decision held that directors weren’t liable to shareholders for failure to insist on their contractual rights after firing Ovitz. Two recent takes on the Disney decision, are Lessons from Disney by Michael G. O'Bryan of San Francisco’s Morrison & Foerster LLP, and The Disney Decision, by Michael Disney, Bill Gula, Carol Hansell, Alan Golden and Guy Lander of Toronto’s Davies Ward Phillips & Vineberg.