Stepping down just two weeks before the global COVID-19 pandemic, Iger had positioned Chapek as his successor to the Disney throne. Only two years later, the former CEO was back overseeing the notoriously magical company.
Is There Life After Disney:
- The New York Times has shared insight into the power struggles within The Walt Disney Company’s corporate leaders.
- Notably, the piece was penned by Disney War author James B. Stewart alongside Brooks Barnes.
- As any Disney fan knows, being CEO of The Walt Disney Company provides incomparable creative, financial, and social power. Very few companies around the world have fan bases so invested in their corporate leaders, for better or for worse.
- Back in 2005, Bob Iger, a former local weatherman, was appointed as CEO of the House of Mouse. Taking the reins from Michael Eisner, Iger was initially uninterested in his long-term future within the company. Eisner, who had become accustomed to the lavish lifestyle provided by his position, was fearful to leave TWDC. Iger had mocked that sentiment.
- Nearly 20 years later, Iger hasn’t been able to leave the magic behind. But what really happened between Iger’s temporary successor Bob Chapek and the resurrected CEO?
- According to The New York Times, Iger had teased Chapek with the potential promotion for years prior to actually choosing the former head of Disney Consumer Products division.
- Making an unannounced visit to his office, Iger questioned Chapek about his choices for his successor. Deciding between former Theme Park head Tom Staggs and former CFO Jay Rasulo, Chapek apparently liked “neither.” Iger then proceeded to agree with Chapek and list off the potential candidates' faults.
- Moving forward to February 2015, Iger promoted Staggs to COO (Chief Operating Officer), indicating Staggs was Iger’s probable successor. Hitting the ten year mark the CEO had set for himself, it seemed as if he was sticking to his timeframe within the company.
- Quickly following Staggs promotion, Iger’s contract was extended by two years with the expectation he would take that time to groom Staggs for his assumed promotion as CEO.
- But hope for Chapek was not lost. In April of 2016, Iger left Staggs behind, blaming the executive for problems around their upcoming Shanghai Disney Resort. With the project being behind schedule and over budget, someone had to take the fall.
- Chapek, who had taken over the company’s theme park division after Staggs’ promotion, had overseen over $20 billion in investments for Disney’s highly profitable theme parks. Hopeful about his future within the company, Chapek was known to be heavily loyal to Iger, even referring to him as “Boss” instead of “Bob.”
- Chapek’s biggest problem was his lack of charisma. A Disney CEO is a public figure, needing to bridge the gap between the corporate world and the families that consume their products. Iger encouraged him to work on this, including building personal rapport with Disney’s directors.
- Bob 2 was once again set back when Iger positioned a deal to acquire the entertainment assets of 21st Century Fox. Iger’s contract was extended until 2021, and Chapek canceled his plans to meet with the directors.
- While Iger enjoyed the celebrity status his position gave him, which included Presidential hangouts and, most recently, being knighted by Prince William, he allegedly grew tired of answering to Wall Street and financial reports. His real passion lied within the creative end of the media giant.
- In 2019, Iger proposed that he would step down as chief executive and become executive chairman, expediting the process of Bob Chapek’s promotion. Claiming the executive knew and respected the company, Chapek would handle all of the non-creative responsibilities of CEO.
- This, however, did not mean Iger would be giving up his power. All division leaders would still report to him as would Chapek, leaving Iger in charge.
- Fast forward to 2020, Chapek officially became the CEO of The Walt Disney Company. Abruptly stepping down, Iger was positioned as creative director and executive chairman for two years. However, that agreement almost fell through with confusion on who Chapek would report to. All parties agreed Chapek would report both to the board of directors and Bob Iger.
- Quickly, this proved tumultuous for the new CEO. Being stripped of most of his power, he still reported to the former CEO. This led to several years of conflict and resentment, which eventually led to fears Chapek would quit.
- Iger began overstepping the CEO, including making the decision to close the parks as protocol to 2020’s pandemic. Meeting without Chapek, Iger gathered with California Governor Gavin Newson to make this monumental decision for the company.
- Iger was explicit about his reassertion of power, emailing other executives outlining his role over the executive just two weeks after Chapek took control.
- Iger had additionally positioned himself to fire the CEO if he felt that the role wasn’t working out.
- The differences between the CEO and Iger escalated furiously in January 2022. Florida had introduced the Parental Rights in Education Bill, which is commonly referred to as the “Don’t Say Gay” bill. Chapek, who felt the company was becoming too political, initially kept the company quiet on the issue. Other media corporations, including NBC Universal, had signed an open letter from The Human Rights Campaign condemning the anti-LGBTQ legislation. Chapek, in fear of being silent, committed to signing the letter, but quietly changed his mind. However, former CEO Bob Iger spoke out. Once again, Chapek had been undermined.
- With furious fans and both current and former employees condemning the CEO’s silence, Bob Chapek was forced to speak out against the DeSantis penned bill. However, this late response amplified Chapek’s voice, leading to a focus on the media giant from both conservatives and the Florida government. This kicked off a political fight that affected the Florida-based parks and gave the company consistent bad press.
- With two people fighting for power, the company was slowly being ripped apart from its seams.
- Just before Thanksgiving in 2022, Chapek was fired. He had been overstepped once again, and this time it was permanent.
- You can read much more on this tumultuous transition here.
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