Disney Legend Tom Murphy has Passed Away at the Age of 96
Thomas S. Murphy, who served as Chairman and Chief Executive Officer of Capital Cities/ABC for 30 years and oversaw its merger with The Walt Disney Company, died Wednesday, May 25, at his home in Rye, New York. He was 96.
One of the most respected and admired businessmen of his era, Murphy was also named a Disney Legend in 2007 for his contributions to the Company.
“Tom Murphy was unrivaled in our industry, not just for his business achievements, but for his impeccable ethics, his unwavering kindness and his boundless generosity,” said Robert A. Iger, former CEO of The Walt Disney Company. “He was a deeply principled man, setting and demanding high standards, always living up to them, and never compromising ethics in the service of business… To me, he was more than a mentor. He was a father figure, placing trust in me, instilling confidence, exhorting innovation, being accessible, and just as capable at commiserating failures as he was at cheering on successes. I will never cease to appreciate his friendship and his goodness.”
Murphy and Chief Operating Officer Dan Burke established a company culture that stressed managerial decentralization and strict cost control. They felt strongly that managers needed to contribute to their communities and that ethical behavior was paramount. The two gathered their managers annually, and the meetings always ended with Murphy’s reading of the company credo.
“Decentralization is the cornerstone of our management philosophy,” it read. “Our goal is to hire the best people we can find and give them the responsibility and authority they need to perform their jobs. Decisions are made at the local level, consistent with the basic responsibilities of corporate management… We expect a great deal from our managers… You can make mistakes, but only honest mistakes. There is no second chance at Capital Cities/ABC if you discredit yourself and your company with unethical or dishonest actions or activities.”
Ten years after the ABC acquisition, Murphy surprised the business world again with the announcement of the merger of Capital Cities/ABC with The Walt Disney Company. It was a $19 billion transaction.
The growth of the company had been notable. People who became shareholders when Capital Cities went public in 1957 garnered $2,000 for every dollar they invested. For the original stockholders, the ones who cast their lot with Murphy and team in Albany, the gain was $10,000 to one.
Murphy served on the Disney Board of Directors for seven years, from 1997-2004, and retired recently from the Board of Berkshire Hathaway, which he joined in 2003.
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Source: The Walt Disney Co
Feature Image: Ruetgers