Case Study: The four pillars of corporate governance are responsibility, accountability, fairness and transparency.
On August 9, 2005, Chancellor William B. Chandler III of the Delaware Chancery Court ruled that the directors of the Walt Disney Co. acted in good faith when Michael Ovitz
was hired in 1995 to be the CEO of Disney and then allowed to walk away fifteen months later after being fired by Michael Eisner, the chair of the Disney’s board of directors, with a severance package valued at $130 million.
• Discuss the role and responsibilities of a board of directors in matters such as this? Is it “fair” that Ovitz was allowed to walk away with such a lucrative severance package only fifteen months after being fired?
• Include in your discussion what is fairness in this instance from an ethical perspective.
• Discuss how this case lacks corporate governance using the 4 pillars.
• Discuss how each of these pillars helps to create ethical corporate governance systems.
• Use an outside company to defend your answers.