DISNEY CHAIRMAN'S BOOK ROYALTIES TO GO TOWARD SCHOLARSHIPS.

Byline: Dave McNary Daily News Staff Writer

Random House announced late Thursday it will publish Michael Eisner's autobiography this fall, with the Walt Disney Co. chairman donating the royalties to scholarships for children of Disney employees.

Eisner, who will receive no advance or guaranteed payment, has been writing the book in collaboration with well-known journalist Tony Schwartz. The project focuses on Eisner's three-decade professional career, which began when he worked as a page at NBC while in college.

The announcement comes less than a month after Eisner had been vilified by shareholders at Disney's annual meeting over the magnitude of his massive 10-year contract - with stock options worth $195 million and annual bonuses of up to $10 million - and the $80 million severance package granted to departed Disney President Michael Ovitz.

Defenders of Eisner have pointed out that nearly all of his compensation is tied to Disney's financial performance. They also note that since he joined the Burbank-based entertainment giant in 1984 from Paramount Studios, Disney's market value has increased from $2 billion to more than $50 billion through the expansion of its theme parks and film, TV and consumer products businesses.

Random House said the yet-to-be-named book covers Eisner's views on the entertainment business, risk-taking, anticipating and coping with change and nurturing and protecting the Disney brand.

``We are proud to be publishing one of the most dynamic and creative executives in the world,'' said Harold Evans, president and publisher of the Random House Trade Group. ``Michael Eisner has an extraordinary story to tell and he tells it with rare candor, wit and insight.''

Eisner previously had disclosed that he began writing the book in 1993 with former Disney President Frank Wells, who died the following year in a helicopter crash.

``The idea for the book arose out of discussions I had with my partner Frank Wells about how to keep our executives motivated and excited in their jobs,'' Eisner said in a prepared statement Thursday. ``After Frank's death, the task became more personal with broader focus.''

Disney spokesman John Dreyer said Eisner decided against having the book published by Hyperion, Disney's own trade publisher, in order to defuse any questions about the project's credibility.

Royalties will be donated to a special fund for the education of children of Disney employees based on merit and need. Dreyer said Eisner views the fund as a ``very worthwhile'' use for the royalties.

``He did not want to be accused of using the book to profit from his experiences here,'' Dreyer said.