New Details Revealed Surrounding Bob Chapek’s Departure and Bob Iger’s Return to Disney

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.