Report: Bob Iger Incredibly Frustrated with Bob Chapek
EDIT: We had this post in the generator and it was scheduled to publish Monday morning. The news of Chapek out and Iger in came Sunday night making this article somewhat irrelevant – but here it is anyway!
Nobody at MickeyBlog ever intended to turn the last three years into a constant rumor mill about palace intrigue…but here we are anyway.
A recent Puck.news (paywalled) article suggests that Disney’s Bobs, current CEO Bob Chapek and former CEO Bob Iger, aren’t on speaking terms.
Photo: CNBC
In fact, their reporting suggests that Iger is frustrated with Chapek. How much of this is accurate, and what are the ramifications for the Mouse House?
Once again, an infamous Disney schism has come to light. We’ll tell you what we know about the matter.
Photo: LA Times
Did Iger Choose the Wrong Person?
Occasionally, angel investors gain exclusive access to the CEOs of Fortune 50 companies. Think of them as private Q&A sessions.
This past week, such a scenario unfolded when Michael Nathanson of MoffettNathanson hosted an off-the-record media event with some Hollywood power players.
Photo: NATP
I should say that these discussions are ordinarily off the record because a Puck.news reporter caught wind of what happened at the event.
This individual felt confident enough about their reporting to reach out to Iger, Chapek/Disney, and Nathanson for comment. Apparently, this request greatly irritated Nathanson.
Photo: Moffett Nathanson
For this reason alone, I’m inclined to believe the story more than most Disney c-suite rumors these days. Someone got a tip so hot that it ticked off the event’s host.
What’s the report? It’s what you’d expect. The last thing that Bob Iger wants to do is criticize his successor, Bob Chapek.
Photo: CNBC
After all, Iger debated retirement three different times. In each instance, he groomed a potential replacement at Disney.
Then, the former CEO would get cold feet and choose not to leave. This tactic (temporarily) upended the careers of several powerful (former) Disney executives.
Photo: Alberto E. Rodriguez / Getty Images
Ultimately, Iger decided that he was on his last legs late in 2020. At the time, he narrowed the list of potential successors to two.
Kevin Mayer had spearheaded the development of Disney+ long before it had a name. He also had a hand in the acquisitions of Marvel, Pixar, and Star Wars.
Photo: TheWrap.com
However, Chapek had run lucrative merchandising arms like Disney’s home video team (back when there was such a thing) and the theme parks division.
In short, Mayer’s credentials were that he could get things done as a creative. Chapek’s CV demonstrated he could make a ton of money.
Photographer: Jesse Grant/Getty Images for Disney
Disney’s Board of Directors favored the moneymaker. Since Iger was Chairman of the Board, he obviously did as well.
So, Chapek gained the keys to the castle while Mayer left the company.
Photo: CNBC
What Does Iger Think of Chapek?
We’re still feeling the ramifications of this decision. Even so, Chapek’s penny-pinching is hard to ignore.
Even the CEO’s most ardent defenders must acknowledge that he’s nickel-and-diming Disney fans.
The dude might as well stick his finger in his jacket pocket and tell us to hand over our wallets.
Photo: CNBC
That strategy wasn’t Iger’s style at all. In fact, Iger believed that the theme park experience should remain available to all.
Disney’s previous CEO hoped never to price the average Disney fan out of the theme park experience. But, unfortunately, Chapek…doesn’t feel as strongly about it.
Photo: History.com
Their difference of opinion causes problems for Iger. If he speaks publicly against Chapek, he’s violating one of Wall Street’s unwritten laws about leadership.
Even worse, since Chapek doesn’t get the job without Iger, it’s something of a self-own if the latter gentleman criticizes Disney’s current CEO.
“That guy is terrible. Who hired him??? Oh, wait…”
Photo Credit: ABCNews.go.com
So, you can understand why Iger has remained reluctant to backbite Chapek. However, Iger feels the pain of Disney shareholders.
At last report, Iger owned more than 500,000 DIS shares after he sold 550,000 in the summer of 2021.
Photo: measureupgroup.com
To Iger’s credit, he sold more than half his Disney interests when the company was trading at $179.48. He looks like a genius now, as the stock hovers in the low $90s today.
Still, Iger is down nearly 50 percent on his remaining Disney investment, just like the rest of us who own DIS stock.
Photo: Bank rate
Nobody’s happy when a CEO isn’t maximizing a company’s stock value. Iger most assuredly isn’t.
Here’s the quote from Puck:
“…privately, lots of folks ask what (Iger) thinks, and when he answers, it’s not favorable. The recent stock dive has only exacerbated those feelings, say people who have met with him.”
Photo: Disney
About the Iger/Chapek Schism…
Longtime MickeyBlog readers are familiar with what went wrong here. When Iger recognized the financial devastation of COVID-19, he promoted Chapek.
Disney’s CEO earned the gig roughly two weeks before the world collapsed. At the time, Iger technically remained Chapek’s boss as Executive Chairman of the Board.
Photo: MGN Online
Iger emphasized this point in a New York Times article in April 2020, a time when Chapek thought he was calling the shots. Iger’s comments indicated otherwise.
Who was right? We will never know for sure, but people don’t become CEOs of Fortune 50 companies unless they have healthy egos.
Source: “Once Upon A Disney Wish”
So, Iger’s comments rankled Chapek, as did their later conflicts regarding Disney’s direction.
The Puck article recounts a story I’ve mentioned here wherein Chapek sat at the opposite end of the room from Iger during the latter gentleman’s retirement party.
Photo: Disney
Their relationship is frostier than Elsa’s magic.
Now, we are left to look back at some causes for the schism, one of which the reporter mentions:
“Internally, Iger was very against the re-org and consolidation of power under (Kareem) Daniel, believing that creative executives should control the destiny of a creative company.”
Photo: Disney
While I’d like to know the sourcing of that comment, it paints a fascinating picture regarding Iger’s frustration.
His vision for Disney vastly differed from the one that Chapek is executing today.
Photo: Disney
However, some would argue that Chapek is the one paying for Iger’s mistakes. Here’s a media analyst and investor’s opinion:
“Did Iger keep ESPN too long vs exiting at the top? I think Iger made some mistakes that Chapek now is dealing with.”
Credit: ESPN
Chapek haters won’t like to hear this, but there IS some truth to that argument.
Is Bob Iger Frustrated with Bob Chapek?
The answer is absolutely yes. How could he not be? Disney is struggling right now in the eyes of Wall Street and Hollywood alike.
Photo:NYpost.com
That’s happening even though Chapek has fervently courted the favor of both collective entities. He wants to be recognized as a financial genius with a surprising creative flair.
From Iger’s perspective, he reconsidered retirement multiple times due to a need to do more at Disney.
(Photo by Chip Somodevilla/Getty Images)
Iger protected his legacy by acquiring powerful brands like Pixar, Marvel, Star Wars, ESPN/ABC, and the Fox assets.
Perhaps the most famous example is that Rupert Murdoch wouldn’t sell his assets to Disney unless Iger agreed to remain its leader indefinitely.
Robert Iger and Rupert Murdoch
credit: Disney
Now, he watches from the sideline as Chapek behaves questionably in protecting the various intellectual properties.
At the end of the day, running a company is akin to any sports competition. There’s a scoreboard, and the results matter.
Photo: Vecteezy
On the day before Chapek accepted the CEO job, DIS stock stood at $133.01. Today, it’s roughly $40 lower.
That’s the equivalent of taking a playoff team and turning them into a lottery team.
Photo: TheWrap.com
Would you be frustrated if you were Bob Iger and your successor had done that? Of course, you would!
That’s Iger’s current predicament. He can’t say anything publicly, but it must be driving him crazy to watch Chapek alter the perception of Disney as a company.
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Feature Photo: Variety
