Disney Shocker: The Firing of Chapek and Return of Iger

 by Ray Keating

News/ Analysis

DisneyBizJournal.com

November 20, 2022

 

Disney supposedly is the company that makes dreams come true. Well, for all those diehard Disney fans, for unhappy shareholders, and for CNBC’s Jim Cramer, the Walt Disney Company has created some magic by doing the unthinkable. Not only has the board fired Bob Chapek as CEO tonight, but they are bringing back Bob Iger, former chairman and CEO, to run the House of Mouse.

Iger, who was CEO for 15 years (2005 to 2020), according to Disney, has been given a two-year contract, “with a mandate from the Board to set the strategic direction for renewed growth and to work closely with the Board in developing a successor to lead the Company at the completion of his term.”

 

The market eventually will decide if this was an act of desperation, or a timely decision to cut its losses with Chapek. DisneyBizJournal recently raised questions regarding Chapek possessing the skillset needed to lead a company like Disney (see here). Either way, the process of developing a successor didn’t work the last time with Iger. We’ll have to see if the second time is the charm. By the way, CNBC's Jim Cramer was publicly calling for Chapek to be dumped.

 

Susan Arnold, chairman of the board, said, “We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic. The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period. Iger has the deep respect of Disney’s senior leadership team, most of whom he worked closely with until his departure as executive chairman 11 months ago, and he is greatly admired by Disney employees worldwide—all of which will allow for a seamless transition of leadership.” 

 

Iger declared, “I am extremely optimistic for the future of this great company and thrilled to be asked by the Board to return as its CEO. Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the globe – most especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration. I am deeply honored to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivaled, bold storytelling.”

 

The hope obviously is that Iger will be able to put out assorted fires that Chapek either started or seemed clueless in handling. The Disney board is expecting that his experience with the company will allow Iger to right the ship, and set the company up with the right person going forward. At the same time, some have to be wondering about the board’s inability to get beyond Iger.

 

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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, and the Alliance of Saint Michael novels; and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right? Also, Keating is a Disney shareholder.

 

Ray Keating is the author of the Pastor Stephen Grant thrillers and mysteries. Just published is Persecution: A Pastor Stephen Grant Novel. Keating says, “I think Persecution might be the most action-packed of any of the Pastor Stephen Grant books so far.”

Signed books at https://raykeatingonline.com/products/persecution  

Kindle edition at https://www.amazon.com/dp/B0BHHJNNB4

 

Two great ways to order Cathedral: An Alliance of Saint Michael Novel, which is the first in the Alliance of Saint Michael series. Signed paperbacks here and the Kindle edition here. 

 

Two great ways to order Ray Keating’s new nonfiction book – The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks here, and paperbacks, hardcovers and Kindle editions here.  

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

Disney CEO Bob Chapek Gets New Contract and Vote of Confidence

 by Ray Keating

News

DisneyBizJournal.com

June 28, 2022

 

The Walt Disney Company announced today that it has extended Bob Chapek’s contract as CEO for three years. The vote by the Disney board was unanimous.

Chapek’s contract was set to expire in February 2023. The new contract extends his CEO tenure to July 2025.

 

Chapek’s time in the C-Suite has been one of many challenges – namely, guiding the company through the pandemic – various recent controversies, and a period of expanding opportunity for the company via streaming.

 

Susan Arnold, Chairman of the Board, said, “Disney was dealt a tough hand by the pandemic, yet with Bob at the helm, our businesses—from parks to streaming—not only weathered the storm, but emerged in a position of strength. In this important time of growth and transformation, the Board is committed to keeping Disney on the successful path it is on today, and Bob’s leadership is key to achieving that goal. 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.”

 

According to the Hollywood Reporter, “Chapek’s $2.5 million base salary will remain unchanged in the new deal, however, his annual long-term incentive stock grant will be increased from $15 million to $20 million, with 60% of that grant being performance-based RSUs.” Restricted stock units (RSUs) are compensation in the form of company shares issued via a vesting plan and distributed on set dates after reaching performance goals.

 

The Disney board recently backed Chapek’s dismissal of Peter Rice as the head of the company’s television content.

 

Chapek stated, “Leading this great company is the honor of a lifetime, and I am grateful to the Board for their support. I started at Disney almost 30 years ago, and today have the privilege of leading one of the world’s greatest, most dynamic companies, bringing joy to millions around the world. I am thrilled to work alongside the incredible storytellers, employees, and cast members who make magic every day.”

 

Many Disney fans have been less than thrilled with Chapek, and various people have already taken to Twitter (no surprise there) to declare their outrage. In the meantime, stockholders are waiting to see if Disney’s stock price will rebound after declining by 45 percent over the past year – although part of that decline obviously ties into the larger economy. The stock offered no reaction to the Chapek announcement, closing at $96.52 today.

 

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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com, and author of the Pastor Stephen Grant novels and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?

 

Two great ways to order Cathedral: An Alliance of Saint Michael Novel, which is Ray’s sixteenth work of fiction, and the first in the Alliance of Saint Michael series. Signed paperbacks here and the Kindle edition here. 

 

Two great ways to order Ray Keating’s new nonfiction book – The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks here, and paperbacks, hardcovers and Kindle editions here.  

 

Get all of Ray Keating Pastor Stephen Grant thrillers and mysteries in paperback and for the Kindle at Amazon.com and signed books at www.RayKeatingOnline.com. 

 

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Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.