Disney Settlement Doubles as Flashback

It's official: Disney (DIS Quote) directors have a lot less leeway than they used to.

On Monday, Disney settled a Securities and Exchange Commission enforcement action arising from charges that Disney failed to disclose certain related-party transactions between the company and its directors, and didn't disclose certain compensation paid to a director.

The settlement carries no fine or other penalty. Disney agreed to cease and desist from violating federal securities laws pertaining to proxy solicitation and periodic reporting.

Nearly all the directors at issue are no longer on the company's board, and Disney has spent much of the year tightening its corporate governance standards. Still, the settlement serves to remind investors of the accusations of clubbiness and worse that for many years nipped at the heels of CEO Michael Eisner. ...