DISNEY DEFENDS OVITZ SEVERANCE PACKAGE.Byline: John F. Manser Bloomberg News Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966) Disney, Walter Elias Disney Co. said Michael Ovitz's $130 million severance package was fair because the Hollywood executive was ``one of the industry's hottest commodities.'' In court documents asking the Delaware Court of Chancery court of chancery n. pl. courts of chancery A court with jurisdiction in equity. Noun 1. court of chancery - a court with jurisdiction in equity chancery to throw out a lawsuit about the pay, Disney said it awarded the generous severance package because Ovitz had enough clout to insist upon it in his employment agreement. Before Ovitz became president of Disney in October 1995, he was chairman and founder of Creative Artists Agency Creative Artists Agency (CAA) is a talent and literary agency which represents a vast array of actors, musicians, writers, directors, and athletes, as well as a variety of companies and their products. , where he represented director Steven Spielberg and singer Michael Jackson. Ovitz left Disney by mutual agreement in December. Two shareholders sued the officers and directors of Disney earlier this month, charging them with wasting assets when they granted a severance package of $38.9 million in cash plus options to buy 3 million Disney shares. The Delaware lawsuit, similar to one filed by the same law firms in Los Angeles, accused the Disney board of entering ``an onerous and unconscionable Unusually harsh and shocking to the conscience; that which is so grossly unfair that a court will proscribe it. When a court uses the word unconscionable to describe conduct, it means that the conduct does not conform to the dictates of conscience. employment agreement'' with Ovitz. Ovitz received the generous severance pay Severance Pay Compensation that an employer gives to someone who is about to lose their job. Notes: Severance pay is not always paid to employees. It depends on the situation in which the employee is losing their job and whether legislation requires severance to be paid. , the lawsuit said, for ``undistinguished un·dis·tin·guished adj. 1. a. Marked by no peculiar quality; not distinguished; ordinary: an undistinguished appearance. b. and unproductive service.'' In its bid to have the lawsuit thrown out, the Disney Co. cited a similar case involving the Coca-Cola Co. called Zupnick vs. Goizueta. In that case, the Chancery Court last week threw out charges of waste, ruling that the issuance of stock options must be totally gratuitous, not just inappropriate, before Delaware law will allow a claim of waste of corporate assets. |
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