Michael Ovitz earned $25 million a year as a founder of a premier Hollywood talent agency. He was also a longtime friend of Disney chairman Michael Eisner, who recommended that Disney hire Ovitz as president. Upon the advice of an independent compensation consultant, the Disney board approved Ovitz’s contract. However, the board did not really understand how much Ovitz would earn under the contract. After 14 months, Ovitz left Disney with $130 million in severance pay. Had the board violated the business judgment rule?