MORE SUPPORT LOST BY DISNEY'S EISNER.

Byline: Greg Hernandez Staff Writer

BURBANK - Michael D. Eisner lost the support of another state pension fund Friday when North Carolina joined California, New York and several other state funds withholding support for his re-election to the board of directors of The Walt Disney Co.

Chairman and CEO Eisner is among several board members up for re- election at Disney's annual shareholder meeting that will take place Wednesday in Philadelphia.

North Carolina Treasurer Richard Moore directed state fund managers to vote against Eisner, who has been at the helm of the Disney empire for nearly 20 years of dizzying highs and lows.

``I don't think we're going to teach any of these old dogs any new tricks,'' Moore said in a televised interview on CNBC. ``It's time for some change.''

The pension fund revolt against Eisner began Wednesday with the California Public Employees' Retirement System - the largest public pension fund in the U.S. A day later, New York followed suit and called on the Disney board to separate the positions of chairman and CEO.

Connecticut, New Jersey, Massachusetts and Virginia have also withdrawn support from Eisner, who will nevertheless be re-elected Wednesday because he is running unopposed.

Dissident shareholders Roy E. Disney and Stanley Gold - former board members who are leading a campaign to oust Eisner - are hoping to achieve at least a 20 percent vote against Eisner. They believe this would send a strong message that it is time for new leadership.

Corporate governance experts said this week that anything higher than 20 percent is a high number, with the damage potentially more severe as the percentage grows. The focus would then be on how the board interprets the protest vote against Eisner.

``It doesn't kick him out but it's an important signal that shareholders are concerned, and it's putting the board on notice that you have a large body of shareholders out there that is somewhat unhappy,'' said Stuart L. Gillan, director of research at the University of Delaware's Weinberg Center for Corporate Governance.

Eisner who has been under heavy fire since Feb. 11 when Comcast Corp. made a hostile takeover bid for Disney. This came just weeks after Pixar Animation Studios called off talks to extend its lucrative partnership with Disney and placed much of the blame on Eisner.

Eisner and the company appeared to have weathered the Comcast bid that was rejected last week by the board. But Eisner is feeling the heat, as evidenced Thursday by his trip to meet with pension fund officials in Ohio. They are expected to announce their decision Monday, as is Florida's pension fund.

The loss of support from the pension funds comes as influential Wall Street players as Institutional Shareholder Services and Glass Lewis & Co. have also called for Eisner's ouster from the board.

The Walt Disney Co. has issued statements this week in support of Eisner and the company's performance in the areas of corporate governance and in the building of shareholder value which it said is ``indisputable.''

Disney stock dropped by 0.75 percent, or 20 cents a share, to close at $26.53 per share Friday on the New York Stock Exchange.

Greg Hernandez, [phone]

greg.hernandez(at)dailynews.com

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Michael D. Eisner

Feeling the heat