Bob Iger’s return as Disney CEO on Sunday night came as a complete surprise to his one-time designated successor Bob Chapek, according to sources quoted by The Post. Chapek was unaware of his impending departure as late as last week.
According to a source close to the matter, Chapek was “blindsided by the move” since “at the end of last week he did not know what was about to happen.”
Chapek was undoubtedly taken aback by the news, said the insider.
According to unidentified sources quoted by the Wall Street Journal, Iger’s discussions with the board to return as CEO were began just within the past few days. Iger returned to the Mouse House less than a year after he stepped down as executive chairman of Disney and nearly two years after he handed over the CEO position to Chapek.
Iger “found retirement tough,” according to a source quoted by The Post.
“Missing the spotlight. Was surpassed by his wife. Very alpha masculine behavior, said the source.
This year, Disney’s stock has declined by more than 40%.
Getty Photographs for Disney
Other top Disney officials were unaware of the shift in leadership until they got Iger’s email on Sunday evening announcing his return. The Wall Street Journal stated that several executives got the news while attending an Elton John performance at Dodger Stadium that was live-streamed on the Disney+ streaming service.
Some Disney employees were allegedly so bewildered upon reading Iger’s email that they questioned whether or not it originated from a compromised account.
Chapek was slated to attend the event, and the firm intended for him to introduce John onstage, according to sources cited by the Journal. It is unknown whether he attended the event.
The Post has sought out for comment to Disney.
Disney’s first response to the “Don’t Say Gay” bill prompted uproar.
REUTERS
Chapek was fired just a few months after Disney’s board granted him a three-year term extension and a minimum $20 million yearly incentive. Disney said in January that Chapek’s salary will quadruple to $32.5 million in 2021.
Chapek received a public vote of confidence from Disney board chair Susan Arnold after he startled industry insiders by sacking Peter Rice, the firm’s top TV executive who was generally seen as his prospective successor.
Arnold stated in a June statement, “The resilience of The Walt Disney Company’s businesses during the epidemic is a credit to Bob’s leadership and vision for the company’s future.” “During this crucial period of company development and transition, we are committed to maintaining Disney’s current success, and Bob and his leadership team have the full trust of the board.”
Internally, though, Chapek’s leadership was allegedly questioned even after he earned the contract renewal.
Chapek was surprised by Iger’s response.
AP
Sources told the Wall Street Journal that anonymous senior Disney officials have informed employees that they have lost faith in Chapek’s direction of the firm. Chapek allegedly failed to establish chemistry with Disney’s creative leaders, especially executives in its film and television section and theme parks business.
This year, Chapek under significant criticism after Disney’s poor response to Florida’s “Don’t Say Gay” law angered people on all sides of the political spectrum.
Chapek’s initial silence on the issue triggered protests from the company’s left-leaning workers and a public reprimand from Iger, who stated that he agreed with President Biden’s critique of the law.
Chapek finally made a statement opposing the adoption of the bill, which incensed Florida’s Republican governor, Ron DeSantis, who spearheaded the charge to abolish Disney’s special tax status inside the state.
Bob Iger is supported as the CEO of Disney.
REUTERS
This year, Disney’s company has struggled, as seen by a 41% stock decline that has outperformed market losses amid the current economic crisis.
The company’s fourth-quarter profits and revenue fell short of Wall Street’s estimates, causing the stock to drop early this month. Despite an increase in subscribers, Disney’s streaming sector lost a staggering $1.47 billion over the time.
During his visit earlier this month at the Paley Center for Media’s International Council Summit in New York, Chapek exhibited little signs of difficulty.
During a Q&A session, Chapek praised the success of the Disney+ streaming service, which boasts more than 160 million global subscribers, while comparing Disney’s operations to a “manual car” that requires constant adjustments to the current environment.
Bob Chapek served as the CEO of Disney for almost two years.
Getty Pictures
Chapek stated at the time, “We are committed to make Disney+ the best it can be, but we also recognize that our investors demand a return on their investment in the near future.”
However, tensions between Chapek, Iger, and Disney’s board had been building for years previous to the most recent executive shuffle. The 71-year-old Iger had publicly and privately undermined Chapek in the days preceding his return, according to sources.
Insider reported in July that Iger regarded his selection of Chapek as his successor as one of his “worst business decisions.”
Reportedly, Iger and Chapek’s friendship deteriorated throughout Chapek’s tenure as executive chairman of the board. The two executives had disagreements regarding Disney’s internal structure, political involvement, and response to the COVID-19 pandemic.