Business
Within the internal battle for control at Disney and Bob Iger's comeback to authority
The inside story of how Bob Iger undermined and outmaneuvered Bob Chapek, his chosen successor, and returned to power at Disney.
Updated 2024-Oct-03 01:00
Bob Iger, wearing a blue sweater, gesturing while speaking in front of a backdrop with the Disney D23 and Visa logos on it.
Chapek his spokeswoman said remains deeply proud of navigating Disney through the unprecedented terrain of the Covid crisis all while working to transform Disney into a media company poised for future success.
Chapek is confident that absent his predecessor and ultimate successor’s campaign against him this collective vision would have been realized under his leadership.
A statue of Mickey Mouse holding the hand of Walt Disney, seen from behind.
After he was fired Mr. Chapek hired Bryan Freedman a lawyer in Los Angeles known for handling high profile media departures.
Freedman told The Times he had advised Mr. Chapek that he had a very strong legal claim against Bob Iger for illegally interfering with his ability to do his job.
Chapek told him that his children and grandchildren were a Disney family and he couldn’t bring himself to file a lawsuit that might hurt the company Mr.Disney responded with a statement saying that Mr. Chapek was fired by the board because he was no longer the right person to serve as C.During an increasingly complex period of industry transformation. Muzzled by a severance agreement Mr.Chapek has stayed in the background in the face of what he considers unflattering unfair and in some cases inaccurate accounts of his leadership.
Though he joined the board of a medical technology firm few opportunities have come his way. From the outset as Disney’s C.Chapek faced daunting challenges beyond his control: the onset of a global pandemic upheaval in an industry being transformed by streaming and the overt hostility of a much admired and still powerful predecessor.
At the same time he certainly contributed to his own demise. Soon after he was named chief executive he stopped ingratiating himself with Mr.And by the end nearly his entire executive team had turned against him even people he’d hired and promoted.
So did the board not just Ms. Catz skeptical of him from the outset but also Ms. Arnold once his strongest defender.
Disney shares rose immediately after Mr. Iger’s return but soon turned down again. Peltz lost the proxy contest in April 2024 Mr.Perlmutter sold all of his 25. 6 million shares saying he had no confidence in Mr. Iger and Disney management.
Disney shares this week were trading at less than $90 down 55 percent from March 2021. Predictably the board rebuffed Mr.Iger’s suggestion that he work for nothing. A securities filing revealed he earned $31. Chapek departed with over $20 million in severance payments after earning just over $24 million for 2022 but his reputation was in shreds.
ImageWish a high profile Disney animated film released in late 2023 became the fifth big budget Disney film to fizzle at the box office that year.
Iger returned to a company beleaguered on nearly every front. He soon faced a debilitating strike by Hollywood writers and actors then a bitter proxy fight waged by Mr.Wish a high profile Disney animated film released in late 2023 became the fifth big budget Disney film to bomb at the box office that year.
The board voted unanimously to terminate Mr. Chapek and instructed Ms. Gutierrez to call him. That night Elton John was giving a concert at Dodger Stadium that was being livestreamed on Disney.
Chapek planned to attend but was still at home in Westlake Village when the call came. Arnold got straight to the point: Effective immediately you’re out.
He wasn’t even offered the face saving gesture of resigning. Despite his anxieties Mr. Chapek was unprepared for something this sudden.
Iger’s Last Extension?Four hours later the news broke about who would be replacing him. Chapek wasn’t surprised.
Iger moved swiftly to dismantle Mr. Chapek’s legacy and stifle any internal opposition. DMED was abolished within days of his return its functions returned to the creative executives.
Perlmutter lost his job four months later. McCarthy’s resignation. Arnold left the board in March 2023 when her one year extension as board chair came to an end.
Catz left the board this July. Iger and canceled a walk they had planned for that afternoon. Arnold would be calling him instead.
Iger reported this to his wife. They’re not asking you back she said. Iger agreed but wondered What if they do? Ms.Bay said he’d have to accept. If they’re asking you to come back they must be desperate. And second you love the company and the people you kind of owe it to them.
Arnold called as scheduled at 3 p. After brief pleasantries she said she wanted to apologize for their rupture.
That was important to Mr. Without an apology he wouldn’t consider a return. He accepted it and said they should move on.
Would you come back? she asked. He accepted without hesitating with three conditions: He wanted it to be announced immediately no later than Monday because it was too big a secret for him to keep.
It had to be for a limited period they decided on two years. And he wanted to serve without pay because he didn’t want anyone to think he was doing it for money.
Arnold said she’d have to get back to him on that. The call lasted all of 15 minutes. Gutierrez to convene a virtual meeting of the board’s independent directors for Sunday without telling Mr.During the meeting Ms. Gutierrez’s assessment. Chapek had lost the support of the senior leadership team and that there was a serious risk of losing some key creative talent.
He’d become dysfunctional. He’d missed important meetings in Orlando preceding the disastrous November earnings call.
In a moment of crisis rather than charting a way forward he was in denial. There were two Disney premieres in New York that week the Searchlight film The Menu and the FX series Fleishman Is in Trouble.
Chapek preoccupied by the mounting pressures on both him and the company didn’t show up. McCarthy stood in for him.
ImagePreoccupied by pressures on both him and the company Mr. Chapek skipped the November 2022 premiere of The Menu starring Nicholas Hoult and Anya Taylor Joy.
Evan Agostini Invision On Nov. 17 the Disney board held a special meeting to discuss the Peltz situation.
Chapek was in Disney’s New York offices and participated by video. He mentioned that he’d had conversations with Mr.Peltz but not that they’d met in person a couple days earlier. The board reaffirmed its decision to rebuff Mr.Soon after the meeting ended Ms. Chapek ordering him to have no further contact with Mr. Peltz even if other Disney executives were with him.
Gutierrez would be the only designated points of contact with the investor as Disney said in one of its proxy filings.
The order set off alarm bells for Mr. He’d met earlier with Mr. Loeb who had dropped his campaign to shake up Disney.
The board had praised Mr. Now he was barred not only from meeting alone with Mr. Peltz but also from communicating with him at all.
He sensed a growing lack of trust. Would you call Susan Arnold? Ms. Iger was still on bad terms with Ms.Arnold partly because of the column by Mr. Smith and hadn’t spoken to her since he left. If she wants to talk to me she knows how to reach me he said.
Chapek was in Palm Beach Fla. To meet again with Mr. Peltz even though Mr. Jefferson the Disney spokesman maintained that board members had instructed Mr.Chapek in August not to meet alone with any activist investors. Chapek never received any such admonition Ms.Davis the spokeswoman for Mr. Chapek deemed communicating with activists and other large investors to be an essential part of his duties as chief executive.
He faithfully followed the board’s direction on all matters she said. Peltz’s oceanfront mansion where the investor and one of his sons made their case for change at Disney.
The meeting lasted about two hours. Perlmutter of Marvel and briefed him on the meeting. Chapek didn’t tell anyone on the board about the trip but Mr.Iger nonetheless found out about it soon after it happened. There appear to have been few secrets within Disney’s upper ranks.
Chapek had been in Palm Beach solely to see Mr. Disney stock dropped 13 percent over the next 24 hours.
With the stock seemingly in free fall creative personnel revolting and Mr. Chapek no longer on speaking terms with Ms.McCarthy the chief financial officer Mr. Chapek didn’t have the credibility or leadership skills to continue as C.The only person who could solve the problems was Mr. You aren’t the first to suggest that she replied.
Alarm BellsA few days later Mr. Iger went for separate walks with Mr. Bergman the movie chief and Dana Walden who oversaw television operations.
Each vented their frustrations with Mr. Iger how bad things were. Don’t talk to me because I can’t do anything about it Mr.Each said they already had. They told him everyone had. Iger if he’d consider coming back. But they’ll never ask me.
Gutierrez that a crisis was looming Mr. Chapek offered him a meeting at 6:30 a. Gutierrez declined saying that several participants were scheduled to leave Orlando that morning.
The week before the earnings call Kristina Schake who had replaced Mr. Morrell as communications chief tried to warn Mr.Chapek that the quarterly results would prompt a cascade of negative news articles. He chided her as an Eeyore a reference to the gloomy donkey from the Winnie the Pooh franchise.
Chapek unveiled the earnings as scheduled on Nov. They fell short of estimates by 26 cents a share only a penny better than the forecast.
In his upbeat presentation to analysts Mr. Chapek avoided mentioning the $1. 5 billion in streaming losses instead saying only that the red ink had hit a peak.
He spent more time extolling the post Covid comeback of the theme parks. On CNBC Jim Cramer called the results one of the most disappointing quarters I’ve ever seen at a major company.
The board met in executive session with Mr. Chapek had attacked her during the break for being truthful.
Catz again asked if Mr. Chapek was up to the job. McCarthy answered He can’t do it. Catz and others told Ms.McCarthy she had to hold the place together. Afterward an angry Ms. How could you attack Christine? she demanded.
She’d never told me the numbers! Mr. Petting a HippoWorried that Mr. Chapek was in denial about the gravity of the shortfall Mr.Gutierrez the general counsel called for meetings during an October management retreat in Orlando.
Gutierrez invited the senior leadership team saying he wanted to ensure a common understanding of the situation and plan for what would surely be a difficult earnings call.
Chapek didn’t attend Mr. Gutierrez’s meetings. Instead during one Mr. Chapek greeted park visitors and petted a hippo at Disney’s Animal Kingdom resort.
Chapek’s spokeswoman said he went to every meeting he was told about adding that the hippo encounter was part of an effort encouraged by the board to come across as more personable.
But that changed a few weeks later when Ms. McCarthy led board members through a presentation of the expected results.
The first slide disclosed that Disney’s earnings per share would be 27 cents below Wall Street’s estimates far more than what she and Mr.Chapek previously discussed and a result sure to shock Wall Street. Disney’s streaming business was still signing up subscribers at a fast pace.
But soaring programming and marketing costs meant that streaming was now heading toward a $1. 5 billion quarterly loss up from $630 million a year earlier just when investors had been promised there would be light at the end of the tunnel.
Board members started pelting Mr. Chapek with questions. How could the results be this bad?Mr. Chapek felt blindsided.
McCarthy had distributed projected earnings results nine days earlier to the board that prominently highlighted the 27 cent miss.
Chapek hadn’t read that board package he had assumed the material in it reflected what he and Ms.McCarthy had discussed when they met. McCarthy continued through the slide presentation as board members appeared to grow more agitated.
About an hour into the meeting Mr. Chapek was visibly annoyed. McCarthy tapped his watch then took it from his wrist and began swinging it back and forth like a pendulum signaling Ms.McCarthy to finish up. During the ensuing break he confronted her. McCarthy’s recollection he accused her of upsetting the board.
I am telling the truth she replied. I never lie and I’m not starting now. The numbers are the numbers.
Chapek said he didn’t attack her and simply asked why she’d blindsided him. He said she didn’t offer any explanation.
I Am Telling the Truth’To prepare for that fall’s earnings report Mr. McCarthy the chief financial officer met around Labor Day to preview the numbers.
They discussed a looming shortfall between Wall Street’s forecasts and the actual results but Mr.Chapek wasn’t especially concerned given strong streaming subscriber growth. Daniel the DMED chief had assured him that streaming was killing it.
Perlmutter’s encouragement Mr. Peltz in July at Disneyland Paris and the two men forged a rapport.
Perlmutter called several board members including Ms. Catz lobbying them to add Mr. If not he warned Mr.Iger would be back at Disney as Disney later put it in a proxy filing. In a call to Horacio Gutierrez the company’s new general counsel Mr.Perlmutter told him: We have to save Chapek. We can’t allow Iger to come back. Arnold that he thought inviting Mr.It would spare Disney a costly and distracting proxy fight. Arnold said the board would never offer Mr.Peltz a seat partly because of his friendship with Mr. The board was wary of Mr. Perlmutter given the antagonism between him and Mr.Iger and also because of Mr. Perlmutter’s campaign against Mr. Feige whom the board had come to view as a crucial employee.
Since becoming chief executive in 2020 Mr. Chapek’s sometimes rocky tenure had been buoyed by Disney’s strong share price.
But since hitting a record high in March 2021 it had been falling along with stocks of other entertainment companies grappling with the new economics of streaming and the decline of cable.
In April 2022 Netflix reported it had lost subscribers for the first time in 10 years panicking Wall Street.
Netflix shares lost 35 percent in just one day. Seemingly overnight investors went from caring only about subscriber numbers to focusing on earnings and losses.
The streaming honeymoon was over. By the time the board announced Mr. Chapek’s new contract Disney shares had dropped almost 50 percent from their peak so low that activist investors like Dan Loeb and Nelson Peltz were circling the company seeking board seats and calling for management changes.
Peltz knew a good deal about Disney and Mr. Iger thanks to his neighbor in Palm Beach Isaac Ike Perlmutter who had sold Marvel to Disney in 2009 and stayed on as Marvel’s chairman.
Perlmutter one of Disney’s largest shareholders. Perlmutter had clashed with Mr. Perlmutter tried to fire Mr.Feige Marvel’s celebrated movie chief amid a disagreement about budgets Mr. Feige and effectively demoted Mr.Perlmutter by stripping superhero movies from his oversight. Iger further marginalized Mr. Perlmutter taking away the television portion of his job and leaving him with only a tiny fief involving comics publishing and a few consumer products.
Perlmutter had been glad to see Mr. Perlmutter had sources in the company who convinced him that Mr.Iger was plotting a return. Perlmutter warned Mr. Chapek’s own anxieties about Mr. Unnerving CallsIn most respects Mr.Iger was pleasantly surprised by life after Disney. While a rumored appointment as ambassador to China or Britain never materialized his calls were returned and restaurant reservations remained easy to come by.
He spent time on his yacht wrote a draft of a second book and acquired stakes in companies like Funko a maker of pop culture collectibles and Gopuff the rapid delivery start up.
He joined Josh Kushner’s firm Thrive Capital as a venture partner and gave more than 20 talks at corporations seeking his wisdom.
Iger insisted he’d put Disney behind him and vowed not to talk about Mr. Chapek unless others brought him up.
Chapek fielded a steady drumbeat of unnerving calls from people who had met with Mr. Iger had heaped criticism on him and wanted to talk about little else.
Chapek complained about Mr. Iger’s whisper campaign to Ms. Arnold and other board members some of whom had independently heard about Mr.Iger had officially retired the board had no leverage on him. No board member ever reached out to him according to Mr.Jefferson the Disney spokesman. Despite the board’s growing reservations about Mr. Chapek and given the lack of any alternative Ms.Arnold agreed to announce Mr. Chapek’s new contract which allowed for a $20 million annual bonus up from $15 million.
On June 28 the board said: Bob is the right leader at the right time for The Walt Disney Company and the board has full confidence in him and his leadership team.
We Have to Save Chapek’ There were those at Disney including Ms. Arnold who thought Mr. Chapek had now gone too far in the other direction.
The about face and abject apology did little to assuage Disney’s outraged L. And it gave Florida’s governor a national platform to mock the company as Woke Disney.
If Disney wants to pick a fight they chose the wrong guy Mr. Florida moved to revoke Disney World’s special tax status and Disney and the state were soon battling it out in court.
ImageAt the very beginning of Mr. Chapek’s time as C. The Disney board member Susan Arnold warned him that his working relationship with Mr.Iger would be tricky. Don’t step on his toes she advised. Chapek thought it unfair that he was being blamed for a policy that had been endorsed by the board at every step.
Iger’s assassin fingerprints all over the ensuing firestorm starting with his tweet. His suspicions only hardened on March 31 when Mr.Iger appeared on CNN. Iger never mentioned Mr. Chapek by name but he didn’t need to. To me it wasn’t about politics Mr.Iger said on the air. It is about what is right and what is wrong and that just seemed wrong. As the bad press continued Mr.Chapek insisted that his contract as chief executive set to expire on Feb. 28 2023 be extended as a show of board support.
Terms for a new three year contract were agreed to by late March. Arnold declined to make the agreement public saying the time wasn’t right given the furor over the Florida legislation.
She was also trying to buy time. The board was having its first serious discussions about whether Mr.Chapek had been the wrong choice for the job. Parker and Mary Barra GM’s chief executive were especially critical of Mr.The board discussed the possibility that Mr. Parker of Nike could step in to replace Mr. Chapek on an interim basis while it conducted a search but he declined.
In side discussions a couple directors explored the idea of an office of the chairman led by Ms. Arnold but she shut down that suggestion saying she was happily retired from the daily slog of corporate life.
The possibility of asking Mr. Iger to come back wasn’t suggested. With pressure on Disney increasing Ms.Chapek to reverse course and condemn the bill. You’re losing the creative community she warned him.
You have to stand with your team. Arnold’s first shareholder meeting as chair Mr. Chapek extolled the company’s recent accomplishments in a taped video then delivered a mea culpa.
I understand our political approach no matter how well intentioned didn’t quite get the job done he said.
He announced that Disney would sign the letter and give $5 million to the organization. The Human Rights Campaign promptly said it would take the money only after Disney demonstrated it was following through on its promises.
Chapek went even further in another memo to employees: You needed me to be a stronger ally in the fight for equal rights and I let you down.
Taking direct aim at Gov. Ron DeSantis of Florida he also halted political contributions in the state.
The memo distributed to employees and the news media on March 7 backfired in spectacular fashion. Letters and calls from prominent people criticizing Disney’s failure to speak out poured in to Mr.Abigail Disney granddaughter of the co founder Roy O. Disney said on Twitter that she was deeply angered.
The Los Angeles Times called Disney’s policy corporate cowardice. Iger put a match to kindling by reposting Mr.Biden’s comment and adding: I’m with the President on this! If passed this bill will put vulnerable young LGBTQ people in jeopardy.
A few days later a Disney L. Employee group sent a letter to Mr. Chapek and other high ranking executives demanding that Disney oppose the bill and denounce similar legislation pending in other states.
Chapek met with the group the next week describing the discussion as meaningful illuminating and at times deeply moving.
In the midst of this Disney’s board held an emergency meeting to discuss the mounting controversy.
Chapek told the board that in keeping with the company’s new policy Disney had not signed the Human Rights Campaign petition.
Arnold was taken aback. I’m confused she said. You told me Disney was going to sign it. The discussion moved on but Ms.Arnold was visibly upset. Chapek sent her a text: My bad. We decided not to sign. I got busy and forgot to tell you.
Despite the pressure from employees Disney’s board agreed to stay the course. Chapek and his corporate affairs team drafted a statement defending Disney’s decision not to comment which was circulated to Ms.Arnold and the rest of the board: Corporate statements do very little to change outcomes or minds. Instead they are often weaponized by one side or the other to further divide and inflame.
Disney remained silent and soon faced an internal revolt. Creative employees many of them gay or staunchly supportive of gay colleagues and friends were still seething over the DMED reorganization.
Arnold agreed that Disney should stay above the fray. But she said the company should sign the Human Rights Campaign letter.
Since so many companies had already signed including Nike General Motors and Oracle whose chief executives sat on Disney’s board she didn’t envision Disney’s being singled out for criticism: There was safety in numbers.
1 at the board’s first meeting with Mr. Iger no longer at the company Geoff Morrell the new chief corporate affairs officer gave a presentation arguing that Disney should stay out of divisive social and political issues especially at the state and local levels unless necessary.
Disney should fight the wars not the battles he said. He also said Disney’s employees accustomed to Mr.Iger making public comments supporting progressive positions would need to be reconditioned. The Florida legislation soon vaulted to national attention.
8 President Biden issued a statement on Twitter: I want every member of the LGBTQI community especially the kids who will be impacted by this hateful bill to know that you are loved and accepted just as you are.
Iger’s tenure the studio had greenlighted a bevy of projects with progressive social and political themes.
Chapek worried the development slate had veered too far left on social issues. Disney was being pulled into partisan political debates more frequently a worrisome situation for a brand that was supposed to stand for everyone.
Some board members agreed. Coming up through the pipeline was Strange World Disney’s first animated film focusing on an openly gay teenager.
Catz a board member was so opposed to the character that she told Mr. Chapek she’d have him fired if Disney released the film.
He reported the threat to Ms. The film was too far along for Mr. Chapek to block it but his fears about Disney’s becoming a cultural flashpoint soon materialized.
In January 2022 the Parental Rights in Education bill was introduced in Florida. Opponents labeled the bill Don’t Say Gay because it prohibited classroom discussion of sexual orientation and gender identity for young students.
The Human Rights Campaign a prominent L. Advocacy organization soon had more than 100 corporate signatories to a letter opposing anti gay legislation in various statehouses.
Media companies like Comcast which owns NBCUniversal had signed on. But Disney one of the largest employers in Florida was conspicuously absent.
Chapek realized that staying silent might cause controversy. Arnold who had succeeded Mr. Iger as chairman to discuss his view that Disney had become too politicized.
He mentioned the Florida bill and the pressure on Disney to publicly condemn it. ImageWhen Strange World an animated Disney film about an openly gay teenager was in postproduction a board member who was opposed to the character told Mr.Chapek she’d have him fired if Disney released it. Disney In conversations with allies at the company he started referring to Mr.Iger as an assassin. A Mea Culpa But he didn’t. During an executive session without Mr. Iger began by apologizing for not having had more interaction with board members since the meeting in Hawaii.
Then he said There are things that I feel I must leave you with that you must know because there are things that you need to watch.
He then unleashed a broadside. Iger asserted that under Mr. Chapek the collegial culture he’d built over 15 years was crumbling.
Disney was a company that depended first and foremost on creativity and Mr. Chapek’s DMED reorganization had damaged Disney’s creative engines.
The company he said had become distracted by a deep rift Mr. Chapek and his allies on one side Disney’s creative executives and the Hollywood talent community on the other.
Iger didn’t go so far as to say the board should fire Mr. Nor did he ask to replace him as chief executive or to remain as chairman.
Iger seemed unusually subdued at the board’s farewell lunch for him. They showed a video tribute. Parker gave him a pair of custom Nike sneakers.
Chapek gave him two gold coins embossed with Mickey Mouse to be placed under the mast of his new yacht a good luck custom to ward off pirates.
It’s going to get worse Mr. He worried that once he was gone Mr. Iger would feel more emboldened to criticize Mr.30 in ABC’s old board room at Disney’s West 66th Street offices in New York City Mr. Iger presided over his last meeting as chairman.
He’d given considerable thought to what he’d say discussing it with his wife and making detailed notes.
He could have reflected on his accomplishments and made a graceful exit something that he’d considered and that some board members expected.
About 80 guests were seated at three long tables outdoors behind the house. Iger was flanked by Mr. Lee of Disney Animation.
Chapek was in the middle of the table farthest from Mr. Iger began a speech recognizing people who’d helped and inspired him.
In one of his first jobs at ABC Mr. Iger had worked as an assistant to the acclaimed sportscaster Al Michaels who was at the party.
Iger mentioned that back in the day he and Mr. Michaels had covered dirt track racing in Terre Haute Ind.
For Wide World of Sports. Iger looked toward Mr. Chapek and went off script: That’s your area isn’t it Bob? he asked referring to Terre Haute in rural southwestern Indiana.
You’d know all about dirt tracks. Chapek’s hometown of Hammond is near Chicago. He seethed at what he felt was a put down.
Iger pushed on worked his way through his career thanking people and then paused when he reached the present.
I think I’ll just stop there he said. Thank you all for coming. There was no praise and no further mention of Mr.Chapek reddened as he felt every gaze turn on him. He stood up and stalked out. It’s Going to Get Worse’ Attacking Johansson so personally was a pretty spectacular unforced error wrote Kim Masters in The Hollywood Reporter.
And many observers are laying that at the feet of C. The person who isn’t getting the blame? Outgoing chairman Bob Iger.
Chapek was stunned that he and not Mr. Iger was blamed for the debacle. Fasten Your Seatbelts’That fall as his end of year retirement date approached Mr.Iger said he didn’t want a farewell ceremony or party at Disney. Chapek hosting such an event was too galling.
At 5 p. M. On Feb. 25 2020 Bob Chapek and Bob Iger settled into matching directors’ chairs on the Disney studio lot for a series of live media interviews.
The company had just shocked pretty much everybody by announcing that the little known Mr. Chapek would be replacing the wildly popular Mr.Iger as chief executive. The bald and stocky Mr. Chapek and the graying but still debonair Mr. Iger struck an immediate contrast even though both were dressed in navy suits and open collar white shirts and both were named Bob.
To avoid confusion some referred to them as Bob One and Bob Two or Big Bob and Little Bob even though Mr.Chapek was taller and heavier. And then there was Handsome Bob and Boring Bob. In an interview with Julia Boorstin of CNBC Mr.Chapek fawned over his predecessor. I obviously have huge shoes to fill he said with wide eyes hailing Mr.Iger’s magic running Disney. Mr. Iger’s 15 year tenure as chief executive had been so successful that he had considered running for president as a Democrat.
Queen Elizabeth II knighted him just before she died. Mr. Iger said he and Mr. Chapek had worked together extremely well but in the next breath qualified that praise: Actually our senior management team has worked together quite well.
Mr. Chapek listened in vain for something more effusive more personal.
Instead he and his wife decided to host their own party at their home in Brentwood. Iger chose a date when he knew Mr.Chapek would be in Orlando Fla. Chapek canceled the trip. 19 he arrived for the party at the same time as Thomas Schumacher the longtime president of Disney’s Broadway division.
Iger’s wife was outside greeting guests as they arrived. Tom Schumacher it’s been too long she gushed.
I can’t believe you came all this way. Chapek stood awkwardly by until she finally turned to him. I see you all the time she said.
She turned back to Mr. A guest who witnessed the exchange recalled Bette Davis’s memorable line in All About Eve : Fasten your seatbelts.
It’s going to be a bumpy night. Black Widow took in $80 million at the domestic box office during its first three days sharply less than previous Marvel films had.
A few weeks later when Ms. Johansson sued Disney the company took a hard line. In a statement approved by Mr.Iger Disney called the suit especially sad and distressing accused Ms. Johansson of a callous disregard for the impact of Covid on theatergoers and said she’d already been paid $20 million.
Talent relations fell under Mr. Iger’s purview as creative head but Mr. Chapek also contributed to the contents of the statement and signed off on it.
ImageIn 2021 Disney released Black Widow in theaters and on Disney even though Scarlett Johansson’s contract called for an exclusive theatrical release and her pay was pegged to the theatrical box office.
She’s not happy her agent told Mr. Marvel Studios Disney For the first time since his promotion to chief executive Mr.Chapek let himself think that Mr. Iger had been vanquished. But trouble soon arose. That summer Disney was locked in negotiations over the release of Black Widow Marvel’s big new superhero film with its star Scarlett Johansson.
Now that DMED was up and running Mr. Chapek wanted to see a return on the $350 million cost of the movie.
On July 9 a few days into the annual gathering of media moguls in Sun Valley Idaho Disney released Black Widow in theaters and on Disney even though Ms.Johansson’s contract called for an exclusive theatrical release and her pay was pegged to the theatrical box office.
Releasing it on Disney would obviously cut into ticket sales costing her as much as $50 million her agent contended.
She’s not happy her agent told Mr. Chapek when he ran into him at the conference. This was exactly the kind of problem Mr.Bergman had warned about when DMED was created. In June 2021 the board gathered at Aulani a Disney resort in Hawaii for its first in person meeting since the pandemic.
Few companies had been as hard hit as Disney. For a time revenue from its theme parks and movies had all but been wiped out.
But it was on a rebound. Disney World had reopened. Disney subscriber growth had pushed Disney’s stock to near a record high.
Iger opened the board retreat with a paean to creativity the essence of who we are as a company. He warned that data and algorithms would never supplant creativity and that not everyone is born with the ability to be wildly creative and not everyone is born with the ability to manage wildly creative or sometimes wild and creative people.
He didn’t mention any names but directors said they knew whom he was talking about. Arnold if she wanted to run the executive session along with him but she told him to leave and asked Mr.Iger was taken aback but took a seat outside the room expecting to be called back after Mr. We know it’s been hard Ms.Iger was out of the room. She complimented the stock price and his operational leadership during the pandemic.
Directors nodded in agreement. When the session with Mr. Chapek ended the meeting adjourned and directors left the room.
No one thought to tell Mr. Iger who was left outside to fume. By early October after a two hour meeting at Mr.Chapek thought he’d gotten Mr. He was in his car heading back to Westlake Village when Mr. Iger just told me we’re not doing the reorganization Mr.Bergman said according to Mr. Chapek was dumbfounded. Iger just 10 minutes earlier. We’re doing it Mr.Chapek said he immediately called Mr. Iger and asked if he’d said that to Mr. Why didn’t you say that to me? Mr.Iger didn’t answer. A more seasoned chief executive might well have paused at this juncture given the lack of internal support.
At least a dozen senior Disney executives had told Mr. Chapek that the reorganization was a bad idea.
But the Disney board gave Mr. Chapek its strong backing for the creation of Disney Media and Entertainment Distribution after extended discussions in which Mr.Iger raised questions but said nothing to oppose it. Iger was on such thin ice with the board at that time that there was little he could say without appearing to undermine Mr.This is his company to run Mr. Iger said to directors at one point. The reorganization and Mr. Daniel’s promotion were announced on Oct.
Chapek had finally accomplished something and he was proud of it. As he later told a reporter at The Times It was singularly the best thing I could have done to transform this culture.
Chapek approached Alan Bergman then the chairman of Walt Disney Studios a figure both well known in Hollywood and respected by Disney’s creative teams.
Bergman said he’d think about it and called Mr. Iger to ask what he should do. Iger said he should tell Mr.Chapek what he really thought which was that DMED was a terrible idea. Bergman turned down the offer.
Chapek turned to a loyal former lieutenant at consumer products Kareem Daniel. A 13 year Disney veteran Mr.Daniel was nonetheless barely known outside the company and had little experience with movies or television.
Overnight he would be running a division with more than $50 billion in annual revenue and would be in the spotlight as Disney’s highest ranking Black executive.
Daniel had his doubts about the wisdom of the proposed restructuring. Chapek spent hours both on the phone and in person at Mr.Iger’s house selling Mr. Iger was unenthusiastic but didn’t object. Chapek was considering a reorganization of Disney’s structure he offered a new corporate job to Alan Bergman left then the chairman of Walt Disney Studios.
Bergman disliked the reorganization plan and turned him down. Rodriguez Getty Images There was logic to Mr.But its seemingly benign business school rationale belied a reality: To strip Disney’s creative heads of authority over spending as well as where their movies and shows would be distributed would be a huge loss of power and status.
Moreover Hollywood talent wanted guarantees of where projects would end up before committing to a deal.
Although the division heads would still report to Mr. Chapek and indirectly to Mr. Iger it was a huge demotion.
In many ways their new boss would really be the head of DMED. As Covid shutdowns continued into the fall of 2020 it wasn’t just Disney’s theme parks that bore the brunt.
Disney’s movie and television production had ground to a halt just as consumers were staying home and turning to streaming services.
Wall Street had been obsessed with subscriber gains and Disney had delivered surpassing 70 million hitting its initial five year goal after only nine months of operation.
But it needed new content which had all but dried up. Subscriber growth was slowing. Chapek pleaded with his studio heads Pete Docter of Pixar Kevin Feige of Marvel Jennifer Lee of Disney Animation and encountered resistance: All of them wanted to hold back their best material for debuts in theaters with star studded premieres.
Chapek had no idea when if ever those days would return. In the meantime Disney needed cash flow to meet interest payments on the enormous debt it had racked up under Mr.Iger to buy most of 21st Century Fox. Chapek’s perceived strengths was corporate organization. He proposed remaking the company around a new division Disney Media and Entertainment Distribution to give priority to streaming services Disney Hulu and ESPN and to guarantee they received a steady flow of Disney’s best content.
DMED as it became known would now have bottom line responsibility for all the company’s entertainment and would decide where films and programs would appear in theaters on television or as was increasingly likely on Disney.
Chapek’s signature initiative as chief executive. Chapek it was a turning point. It wasn’t just paranoia: He was now convinced that Mr.Iger was trying to get rid of him and return as chief executive and that the board might let him. This Is His Company to Run’ In the ensuing months Mr.Iger seemed increasingly cranky about the board’s reaction to Mr. Why are you so hostile toward the board? Mr.Chapek finally asked during one of their calls which had continued despite the tensions. Iger told him that he couldn’t handle the truth and then proceeded to say that before the board had agreed to name Mr.Chapek chief executive the directors had assured Mr. Iger that if he didn’t think it was working out he could fire Mr.Chapek and return as chief executive anytime he wanted. Given the dual reporting structure it is unclear whether Mr.
Iger had that authority. Ellen Davis a spokeswoman for Mr. Chapek confirmed that account. Chapek was shocked and surprised when told by Mr.Iger that he believed he could have his job back if and when he wanted it. Immediately after the call Mr.What is he talking about? he asked. Arnold tried to make light of it. Well you know Bob Ms. He may think so but just let it go.
It wasn’t the answer Mr. Chapek was hoping for. Jefferson the Disney spokesman said there was never any such understanding between Mr.The claim that he could return at will was not something Mr. Iger would have said Mr. Later in an audit committee board session with Ms.Catz the board member who had questioned Mr. Chapek’s readiness asked if she thought Mr. Chapek was up to the job.
McCarthy the chief financial officer didn’t immediately answer. I don’t like the fact that you’re hesitating Ms.I’m giving you a qualified answer Ms. If he will start to listen. We’re all trying to help him but he doesn’t listen.
ImageChristine McCarthy Disney’s chief financial officer was taken aback when Mr. Iger told her he would be announcing Mr.Chapek as the next C. She said she would do everything she could to support him but was skeptical he had the skills or the background the job required.
Michael Kovac Getty Images Mr. Chapek said he was sorry their differences had become a board issue. But he was incensed when Mr.Parker the board member who had led Nike questioned Mr. Chapek’s lack of contacts in the Hollywood creative community since that was supposed to be Mr.Iger’s jurisdiction. He insisted that he hadn’t skipped meetings but rather that Mr. Iger had scheduled them without telling him.
Iger had ceded little authority something Mr. Chapek said he had accepted without complaining. I was just trying to be a good soldier Mr.The board’s message to both men: The company was in crisis and they needed to start acting like adults and work together.
What will be left of my reputation? Mr. This too shall pass she responded. Iger would be gone in 20 months and the C.Chapek all but begged to be named to the board as a show of confidence in him. Arnold conferred with several other directors.
None was aware of the depth of the hostility that had developed between Mr. Iger and his designated successor.
But they agreed it could damage his standing. The board now felt it had no choice but to name Mr. Chapek a director as a show of support.
Iger and chastised him for the column. She told him it was the worst thing that could have happened to Mr.She pointed out that had Mr. Iger taken the board’s suggestion to initially name Mr. Chapek chief operating officer rather than chief executive none of this would be happening.
In any event the sniping had to stop. Iger was taken aback by both the tone and substance of Ms. She seemed to be siding with Mr.Chapek even though he had been C. For less than two months and Mr. Iger was still ultimately in charge.
She and other board members should be happy he was stepping back up during a crisis Mr. Iger thought especially when Mr.Chapek’s leadership had been so lackluster. On April 15 three days after Mr. Smith’s column published Mr.Chapek was named to Disney’s board. In June the board scheduled private sessions by video call with both men to address the conflict.
He aired his complaints about Mr. Chapek’s leadership including that he hadn’t sought Mr. Iger’s advice and counsel.
Chapek had no standing in the creative community and hadn’t made any efforts to improve it. He’d skipped creative meetings that Mr.Iger had invited him to. This Too Shall Pass’Starting at 6 a. On Monday Jayne Parker Disney’s chief human resources officer called Disney directors to alert them to Mr.She got one out of bed to take the call. Chapek got on the phone with Ms. Arnold the board’s lead independent director.
This was the first time he’d broached the feud with a director. He hadn’t wanted to call attention to something that seemed petty compared with a global pandemic but he felt this could no longer be ignored.
Chapek who deemed some other board members fiercely loyal to Mr. Iger felt he’d developed a good rapport with Ms.Arnold who had spent most of her career in the Midwest at Procter amp Gamble eventually becoming it’s first woman president.
Chapek the son of a machinist from Hammond Ind. Had gotten his start in packaged goods working in the pet food division at Heinz and helping to market Kraft cheese.
Arnold also knew something about corporate succession: She’d been a leading candidate to become Procter amp Gamble’s chief executive but took herself out of the running and left the company in 2009 partly because as a prominent gay executive she didn’t want her personal life to be publicly scrutinized something that would most likely accompany the job.
Arnold was taken aback by the vehemence of Mr. Chapek’s reaction to the column. She thought he seemed paranoid that Mr.Iger was out to destroy him. She urged him to calm down and defer to Mr. Iger as she had advised before.
He’s killing me Mr. Chapek didn’t sleep that night. Early the next morning he confronted Mr. Iger denied that he had spoken to Mr.Smith which only further enraged Mr. Chapek who pointed out that Mr. Iger’s quote came directly from an email.
Iger said he didn’t understand why Mr. What was wrong with saying he was reasserting control in the midst of a crisis? You’ve cut my legs out from under me Mr.I’ve never felt worse in my life. The conversation became heated and both men raised their voices.
Iger told several people immediately afterward that he’d never been treated with more disrespect by anyone in his entire life.
Iger was concerned his relationship with Mr. On Sunday April 12 Mr. Chapek hosted a belated late afternoon party for family and friends at his home to celebrate his promotion.
A friend emailed him Mr. Smith’s column which had just appeared online. Chapek stepped out of the party and read it.
After a few weeks of letting Mr. Chapek take charge Mr. Iger smoothly reasserted control Mr. Chapek read with mounting disbelief.
Chapek the new nominal chief executive and even speculated that the choice of Mr. Iger’s successor may be open again.
Iger as saying in an email that a crisis of this magnitude and its impact on Disney would necessarily result in my actively helping Bob Chapek and the company contend with it particularly since I ran the company for 15 years! Mr.Chapek immediately called Ms. Mucha the communications executive. What the hell is this? he demanded.
Trying to calm him she argued the column wasn’t that bad. Chapek left was the consummate company man loyal to Mr.Iger to the point of obsequiousness. But nearly everything Mr. Chapek did or didn’t do reinforced Mr.Iger’s sense that naming Mr. Chapek as his successor had been a huge mistake. Joe Burbank Orlando Sentinel via Associated Press But Mr.He decided to wait until the government passed a Covid relief bill. Two months earlier when Mr. Iger had appeared together on CNBC Mr.Iger brushed aside a question about the potential for confusion over who was in charge. Bob is going to be running the company Mr.But now it seemed to Mr. Iger was acting as though nothing had changed Mr. Iger was still chief executive in all but name.
Chapek’s wife told him he was little more than Mr. He’s Killing Me’ On the way back to California Gov.Gavin Newsom called Mr. Iger before announcing that he would restrict public gatherings in California because of Covid.
But he thought Disneyland might stay open. The governor didn’t want people to panic and he feared they might if Disneyland closed.
Newsom that keeping the theme park open was a bad idea given the health risks to both guests and employees.
Newsom later publicly praised Mr. Iger’s advice and cooperation. Chapek didn’t disagree with the decision to close the parks but he was furious that Mr.Iger had excluded him. The decision had nothing to do with Mr. Iger’s creative mandate. Disney’s executives worried about the shock that the park closures would have on the company’s cash flow.
Chapek made the decision to quickly furlough albeit with health benefits more than 90 000 employees at the theme parks.
ImageAt the beginning of the pandemic California Gov. Gavin Newsom suggested that Disneyland stay open he didn’t want people to panic.
Iger told him that was a bad idea. Pool photo by Rich Pedroncelli Several passengers including Mr. Chapek recalled that Mr.Iger pulled out his iPad and started flipping through recent photographs telling the stories behind them.
There were photos of himself with Mr. McCartney and recent dinner guests in New York. Chapek said he tried to steer the discussion back to the annual meeting but Mr.Iger interrupted: Did you see my new yacht design? Flustered by Mr. Iger’s digressions Mr. Chapek got up and moved to the plane’s rear compartment.
Others on the flight said Mr. Chapek immediately went to the back of the plane and didn’t recall his having any iPad chitchat with Mr.Chapek’s extended absence was noted in the front cabin. Does Bob want to get briefed or not? Mr. Iger asked his fellow passengers Ms.Iger stood up and went to find Mr. Bob do you want to sit with us so we can brief you? Mr. Isn’t it all in here? Mr.Chapek replied holding up the binder. Iger said the book couldn’t convey the nuances. Chapek said he’d review the book and let him know if he had any questions.
He went back to his reading. He doesn’t want to be prepped. He says the book is enough an incredulous Mr.Iger told his fellow passengers when he returned to the front compartment. Iger suddenly felt as if he were at the wedding altar with the bride walking down the aisle.
He realized he’d made a terrible mistake. Some board members weren’t thrilled with the office decision or the dual reporting change.
But as it had in so many instances the board went along with what Mr. Iger faced the cameras as planned the next day.
The company’s announcement said the change was effective immediately. The sudden move shocked and baffled Hollywood.
Paul McCartney a close friend of Mr. Iger’s called him to ask if he was sick. Iger’s Lap Dog’About two weeks later on March 11 Mr.Chapek was scheduled to make his formal debut as chief executive at Disney’s annual shareholder meeting.
Chapek was nervous all the more so because public speaking had never been his strength. Before the meeting Disney’s investor relations personnel assembled thick briefing binders covering every conceivable data point and question that might arise.
Armed with these binders Mr. Chapek settled into the front compartment of the Disney Gulfstream jet for the four and a half hour flight to Raleigh N.The site of that year’s meeting for what Mr. Chapek expected would be an extended preparation session.
Alan Braverman Disney’s long serving general counsel called Mr. Iger to say that under the company’s bylaws the chief executive had to report to the board not to Mr.Iger that was a nonstarter. He wanted to retain ultimate control. Mucha who came up with a hastily conceived compromise: Mr.Chapek would report to both the board and Mr. Iger since from his perspective Mr. Chapek still reported to him.
Iger insisted that the announcement be made the next morning as scheduled even though board members hadn’t discussed as a group let alone approved the new dual reporting arrangement.
Chapek about the change to the reporting structure. Chapek wasn’t very concerned about it because Mr.Iger had always been such a strong supporter of his. In another sign that Mr. Iger intended to maintain a visible presence he decided to stay in the office that both he and Mr.Eisner had occupied as chief executives. Chapek was relegated to smaller quarters nearby. The arrangement only added to internal confusion about Mr.Chapek’s new status. Arnold recognized that the unusual arrangement in which Mr. Iger would be staying on as executive chairman and chief creative officer posed a potential for conflict.
Chapek to show him deference. Give him a wide berth on creative matters she advised. Don’t step on his toes.
Chapek would not be joining Disney’s board which was unusual given that nearly all chief executives also serve as board members in many instances as chair.
But the board wanted a probation period for Mr. Chapek and wanted to emphasize that he would be reporting to Mr.It would be awkward if Mr. Chapek were also a member of the board responsible for Mr. In the days before the announcement Mr.Iger told just a handful of top executives among them Christine McCarthy the chief financial officer.
Like almost everyone who learned the news she was taken aback. While pledging to help Mr. Chapek succeed she pointed out some of his weaknesses: He knew next to nothing about the television business he didn’t know anything about sports programming he didn’t have many relationships with Hollywood talent he hadn’t dealt with Wall Street.
Chapek didn’t come across as especially creative. Iger had faced the same criticism when he was named president of ABC Entertainment in 1989.I think he can do it Mr. And I’ll still be around. A Last Minute HitchOn Feb. Chapek’s announcement the succession plan nearly fell apart.
Why the rush? Zenia Mucha Disney’s chief communications officer and a close adviser to Mr. Iger counseled delay she disagreed with the entire plan including the selection of Mr.By mid February the coronavirus was spreading widely and the pressure it could put on the company was becoming clear.
Iger had received a detailed briefing in New York from the ABC News team covering the story. Disney’s theme parks in Shanghai and Hong Kong had already closed.
David Jefferson a Disney spokesman said the pandemic had nothing to do with the timing of the leadership change.
Board members agree but when pressed offer no explanation for the haste other than that was what Mr.Don’t Step on His Toes’When Mr. Chapek shared the good news of his promotion with his wife Cindy she was skeptical.
We’ve heard that before she told him. But the board’s lead independent director Ms. Arnold flew from her home in Oregon to meet with Mr.Chapek in the Rotunda as Disney’s executive dining room is known. There she confirmed that he was the board’s unanimous choice to succeed Mr.This is happening Ms. Chapek was told there was no time for him to meet with other directors. While they had met with Mr.Chapek in his previous roles the idea that there was no time or no need to interview him to assess his capacity to serve as chief executive not to mention explore his vision for the future of a company in the midst of profound change seems inexplicable.
Safra Catz the chief executive of Oracle and a Disney board member pushed back. Chapek chief executive rather than chief operating officer?Mr.
Iger said he didn’t want a rerun of the situation with Mr. Staggs in which people thought Mr. Staggs was merely auditioning for the top job and they could outmaneuver him by going to Mr.But in a rare show of resistance the board was unpersuaded. It agreed to consider the issue over the holidays.
By the time board members met in late January 2020 in Los Angeles they had come around. Chapek the good news immediately afterward saying an announcement would be made in just three weeks on Feb.
ImageZenia Mucha Disney’s chief communications officer disagreed with Mr. Iger’s decision to elevate Mr.Chapek and to do it so quickly. Charles Sykes Associated Press There were aspects of the job that Mr.Iger didn’t especially enjoy like earnings presentations and being grilled by Wall Street analysts.
He had grown tired of budget meetings. He often complained to Mr. Chapek and board members about his compensation.
It was a frequent source of tension between him and Susan Arnold who sat on the compensation committee for many years.
Iger pointed repeatedly to Leslie Moonves the chief executive of CBS who was paid more than him even though CBS was much smaller and less complex.
3 million barely half that. One Disney director called it Moonves envy. In 2018 shareholders rejected Mr.Iger’s compensation in a nonbinding vote Disney won approval in 2019 only after Mr. Iger agreed to a smaller package.
Iger also pondered a conversation he’d had with Steve Jobs shortly before the Apple co founder died in 2011.Iger not to stay so long at Disney that he ended up depriving himself of some of the great things life had to offer.
When the company’s board met in December 2019 Mr. Iger broached the idea of stepping back but not leaving entirely.
Why don’t we accelerate the process? Mr. Chapek was his choice to succeed him. Iger told the board that Mr.Chapek knew the brand well respected it and would do no harm. Chapek had great integrity. One of Disney’s directors Mark Parker had recently decided to step down as chief executive of Nike and become executive chairman.
Iger pitched doing the same thing. That model would allow him to stay at Disney for the remainder of his contract doing what he liked best overseeing the company’s creative endeavors.
Chapek would become the C. And handle everything else. A crucial element was that all the division leaders would report to Mr.Chapek would report to Mr. Iger ultimately in charge. There was an obvious financial incentive as well: Mr.Iger still had more than $100 million in unvested stock options and his leadership could help protect its value.
Iger wondered as did Mr. Eisner before him: If stripped of his power and multimillion dollar compensation at Disney would his allure diminish? For several years the license plate holder on Mr.Iger’s silver Porsche posed the question Is there life after Disney? Mr. Chapek to schedule a series of one on one meetings with Disney’s directors to build a rapport and lay out his vision for the company’s future.
But in late 2017 Disney reached a deal to buy the entertainment assets of 21st Century Fox. Iger received a big bonus for consummating the deal stock awards of up to $142 million at the then current share price and the board extended his contract for a sixth time.
He would now retire at the end of 2021. Chapek canceled his plans to meet directors. Is There Life After Disney?A Disney chief executive is an instant celebrity.
He they’ve all been men presides over what are perceived as some of the most powerful and glamorous businesses in the world: the Marvel Disney Pixar Lucasfilm and 20th Century movie studios the ABC broadcast network and news division cable channels like ESPN FX and National Geographic.
Its 12 theme parks attracted a combined 142 million visitors in 2023. And even by chief executive standards the pay is enormous.
Iger’s net worth at over $700 million. With a yacht corporate jet power and influence Mr. Iger and his wife Willow Bay a former television anchor and the current dean of the University of Southern California’s journalism school hobnobbed with a rarefied crowd: Barack and Michelle Obama Jeff Bezos Steven Spielberg David Geffen and Oprah Winfrey to name just a few.
Chapek was back in the running. He had started at Disney in 1993 in the VHS tape department eventually rising to oversee all movie distribution.
In 2011 he took over Disney’s consumer products division which soon became flush with Frozen merchandise sales.
Chapek had been promoted to run theme parks overseeing at least $24 billion in capital investments including new Star Wars Avengers and Toy Story rides.
Chapek was the consummate company man loyal to Mr. Iger to the point of obsequiousness. Alone among Disney senior managers he routinely called Mr.Iger Boss rather than Bob which Mr. Iger found endearing. At the same time Mr. Iger’s charisma and wasn’t a natural communicator even Mr.Chapek acknowledged that he had low E. Or emotional intelligence. Iger urged him to work on his bedside manner.
Iger with Tom Staggs left whom he briefly considered as his successor before souring on him and John Lasseter right the Pixar co founder in 2012.Paul Hiffmeyer Disneyland via Associated Press But Mr. He complained that Shanghai Disneyland Mr. Staggs’s project was behind schedule and over budget.
Staggs in April 2016. Iger who started his career as a weatherman on a cable channel in upstate New York had vowed to never follow in Mr.Eisner’s footsteps. To friends he mocked Mr. Eisner’s fears about leaving Disney that his calls to power brokers would go unreturned and that he wouldn’t be able to get reservations at top restaurants.
Chapek and others that he would never stay more than 10 years. Iger seemed well on his way to honoring that pledge.
Chapek was running Disney’s consumer products division Mr. Iger paid a rare unscheduled visit to Mr.Chapek at his office several miles from corporate headquarters. Iger asked whether Mr. Chapek thought Jay Rasulo or Tom Staggs two top lieutenants should succeed him as chief executive.
Do you want my honest answer? Mr. That’s what I thought you’d say Mr. Iger said according to Mr.Chapek and then proceeded to list their respective faults. Chapek’s first inkling that he might be Mr.Iger’s actual choice as successor. But his hopes were dashed when in February 2015 Mr. Staggs then the theme park chairman as chief operating officer and presumptive heir.
Around the same time the board extended Mr. Iger’s contract two years to 2018 with the expectation that Mr.Iger would spend much of that time grooming Mr. Staggs as his successor. ImageA power struggle between Roy E.Disney left and Michael Eisner right led to Mr. Iger’s ascension to the C. Joe Skipper Reuters Mr.Iger ascended almost two decades ago after a power struggle between Michael Eisner a long serving chief executive and Roy E.Disney Walt Disney’s nephew and a Disney board member. Eisner had already elevated and then dispatched.
