More details on the story and reasoning behind Bob Iger’s return to The Walt Disney Company as CEO are continuing to come in. CNBC has revealed a few new details, including when the board reached out to Iger and when former CEO Bob Chapek found out about his end with the company.
What’s Happening:
- The impetus for Disney’s board choosing to rehire Bob Iger came after they received multiple internal complaints from senior leadership that Bob Chapek was not fit for the job.
- Disappointing fourth-quarter earnings and the subsequently announced hiring freeze and layoffs led to some internal pushback against Chapek.
- Apparently the executive change came about quickly, which blindsided Chapek and his closest allies, such as Disney Media and Entertainment Distribution head Kareem Daniel, who is also out at Disney.
- One of the executives to express a lack of confidence in Chapek was Christine McCarthy, who has been Disney’s chief financial officer since 2015.
- Following the internal complaints, the board decided to reach out to Iger first for guidance.
- Iger has consistently heard complaints from his ex-colleagues throughout the year about Chapek’s leadership style and decision to pull away budgetary power from Disney’s creative executives.
- Some internal potential CEO candidates were considered, however the board decided not to put someone new in the position due to the current pressures on the company.
- Iger agreed on Sunday to serve as CEO through the end of 2024, and will earn a $1 million base annual salary, Disney said in a regulatory filing Monday.
- Chapek, who was notified on Sunday of his departure, is reported to receive a severance package of at least $20 million.
- The company’s shares rose Monday following the news of Chapek’s replacement.