Disney4me Posted January 4, 2023 Report Share Posted January 4, 2023 When Bob Iger stepped up as CEO of The Walt Disney Company for the second time, few knew exactly what had transpired behind the scenes for such a dramatic, Hollywood shake-up to occur. Bob Chapek and Bob Iger©CNBC Since then, we’ve learned more details about Iger’s salary, what led to Chapek’s ousting, and the disputes that took place between Disney executives. We know that Iger initially had trouble handing over the reins to Chapek when he stepped down in 2020, but the disagreements didn’t end there. The Iger-Chapek conflict runs deep, and we’re sharing four important secrets you probably didn’t know about it. 1. Iger didn’t really leave when he stepped down as CEO. Bob Iger stepped down in late February 2020 after making a surprise announcement that he would be retiring from his position as CEO of The Walt Disney Company, to be succeeded by Bob Chapek. Iger was to remain at Disney as executive chairman of the board, but have a more hands-off role when it came to daily operations. ©Reuters But according to The Wall Street Journal, less than one month later the men were at odds over how to handle operations during the COVID-19 pandemic. Reportedly, tensions grew as Iger kept his office and started calling meetings with “Chapek’s underlings” without inviting the then CEO. Disney CEO Bob Chapek in Disney World on its 50th Anniversary Iger felt hurt that Chapek had not leaned on him for advice, and apparently told confidants that he believed Chapek “was doing a terrible job and that he was incompetent.” Later, at the end of 2021, Bob Iger officially left The Walt Disney Company after postponing his retirement four times. Just 11 months later, Iger would return to lead the company once again. Why Disney Replaced Bob Chapek with Bob Iger 2. CFO Christine McCarthy was integral in Chapek’s removal. Former CEO Bob Chapek and CFO Christine McCarthy were often seen as a dynamic duo when it came to company operations and leading tough meetings and earnings calls. But behind the scenes, it wasn’t smooth sailing for these executives. It began when McCarthy told directors in a board meeting that the company would likely miss analyst expectations for revenue and profit. Bob Chapek This caught Chapek off guard as they hadn’t agreed to discuss this in the meeting. Chapek reportedly complained to colleagues that McCarthy had made him look bad, while McCarthy griped about Chapek’s performance. It was then that McCarthy went to board chair Susan Arnold and threatened to resign if Chapek “was not cut loose immediately.” Christine McCarthy ©The Walt Disney Company Luckily, McCarthy had maintained a close relationship with Iger and before making any other moves, she called him to see if he would be interested in returning as CEO to help redirect the company. When Iger seemed amenable, McCarthy took the news to Arnold. Two days later, Arnold offered Iger the job. Learn More About McCarthy’s Role in Chapek’s Removal Here 3. Iger and Chapek fought over a plan to furlough Disney Parks employees. When the pandemic forced Disney to close its parks, Iger stayed on to help lead — much to the chagrin of Bob Chapek, apparently. Iger shared with the New York Times back in 2020 that his initial plan to retire and take a back seat was completely undone by the pandemic. He shared, “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!” Bob Iger ©Bloomberg Chapek was reportedly livid by these comments, and it was clear that he would certainly not be seeking out the advice of Iger on how to run things. This all came to a head just one month after Chapek took over as CEO, when he and Iger fought over a plan to furlough more than 100,000 Disney Parks employees. Disney World Cast Members Congress had yet to approve legislation that would curb the economic impact of the pandemic, and Iger wanted to hold off on layoffs and furloughs until that legislation passed, which was in the best interest of Disney Parks employees. On the other hand, Chapek wanted to move quickly in order to preserve funds and cut costs. In the end, Iger prevailed after convincing the board it was better to wait. ©Bloomberg Chapek confided to some that this disagreement made him “feel as though he had been undermined from the start,” and that the idea “infuriated” him. Read More About the Disney Parks Furlough Conflict Here 4. Iger and Chapek disagreed on initial goals set for Disney+. Since Chapek’s ousting, we’ve learned that a major contributing factor was the money Disney was hemorrhaging on the Disney+ streaming service. While Chapek poured his attention into content and growing the service, it didn’t do much for the overall bottom line leading to his departure. ©Disney But, when Chapek first took over as CEO he had even loftier hopes and dreams. According to The Wall Street Journal, Iger told investors in April 2019 that the company projected Disney+ would sign up 60 to 90 million subscribers in its first five years. Chapek had a higher goal, though, and in December 2020 announced that Disney+ could reach 260 million subscribers by 2024. This staggering number was questioned privately by Iger, who confided that “it wasn’t smart to offer such an ambitious goal.” ©Reuters In early 2021, though, Disney announced that the streaming service had reached 100 million subscribers in its first 16 months — far surpassing Iger’s initial goal. Though Iger was known for underpromising and overdelivering, Chapek’s goal of 260 million subscribers was 2024 was looking more likely. ©Disney || Bob Chapek Ultimately, though, Disney+ is still not profitable — and is not expected to be until 2024. Now that Chapek is out, we’ll have to wait and see what Iger’s plans are to redirect this area of the company and hopefully turn it in the right direction. Read About the Latest Disney+ Subscriber Numbers Here No matter what might have gone on behind closed doors throughout this CEO shake-up, Iger is now tasked with setting the strategic redirection of the company and helping find his next successor. Who that successor might be remains to be seen, but you can be sure we’ll keep you updated every step of the way. To learn more about Bob Iger’s return as Disney’s CEO, check out these posts: Is Disney CEO Bob Iger on a Collision Course with Florida Governor Ron DeSantis? CEO Bob Iger Reportedly Believed Chapek Was “Killing the Soul” of The Walt Disney Company 7 Big Challenges Bob Iger Will Face as Disney’s New CEO Why Disney Replaced Bob Chapek With Bob Iger Keep following DFB for more updates on all the latest Disney news. EVERY Major Change That Happened Since Bob Iger Returned as Disney CEO Join the DFB Newsletter to get all the breaking news right in your inbox! Click here to Subscribe! What do you think of the Iger-Chapek conflict? Let us know in the comments!The post 4 Important Secrets You Didn’t Know About the Iger-Chapek Conflict first appeared on the disney food blog.View the full article Quote Link to comment Share on other sites More sharing options...
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