With Christine McCarthy Gone, Could Bob Iger Extend His Stay?
Last week’s shocking announcement that CFO Christine McCarthy was stepping down could have long-term ramifications for the future of The Walt Disney Company.
When CEO Bob Iger returned to the company in the Fall of 2022, he assured investors that his return was temporary, and that one of Disney’s top priorities would be coming up with a succession plan.
Among those tasked with identifying Iger’s successor was McCarthy, who many considered a candidate for the role herself.
A Glaring Hole
Disney has long used the CFO job as a stepping stone for potential future CEOs. Former Disney executives such as Tom Staggs and Jay Rasulo, who were once on the shortlist to replace Iger, have previously held the title.
Nearly a decade later, both executives have left Disney, and Bob Iger is still in charge. Now, with the company beginning a search for a new CFO, Disney’s future has become that much more murky.
McCarthy was a fixture within the Disney organization, who had helped to oust former CEO Bob Chapek and convince Iger to return.
“McCarthy has been CFO for 8 years and is regarded as a close confidant of Bob Iger, a straight shooter with the sellside/buyside and a strong operator for the upcoming focus on DTC margin improvement,” Wells Fargo analyst Steven Cahall wrote in a note Friday.
Could Iger Stay Longer?
Disney has gone through radical changes since Iger returned to the helm last year. The company just completed a drastic restructuring, that saw Disney shed 7,000 jobs. Additionally, Iger has pivoted Disney’s streaming strategy away from a focus on subscribers and towards profitability.
With both Disney and the entertainment industry as a whole facing an uncertain future, there is a growing belief among insiders that Disney will ask Iger to stay beyond his original two-year commitment.
Loop Capital analyst Alan Gould wrote Friday that with Disney in the midst of such a disruptive period, “the Board is now in a position where it will be performing both CFO and CEO searches almost simultaneously.”
“Given this unexpected change, we speculate whether the Board might ask Mr. Iger to remain CEO for an additional year.” He added.
Thanks for visiting MickeyBlog.com! Want to go to Disney? For a FREE quote on your next Disney vacation, please fill out the form below, and one of the agents from MickeyTravels, a Diamond Level Authorized Disney Vacation Planner, will be in touch soon!