Disney Palace Intrigue Continues, and Bob Iger Is Probably Staying
The Walt Disney Company has just fumbled through another awkward executive change.
CFO Christine McCarthy has announced her retirement and may have vented to the Wall Street Journal about the affair.
On Thursday, the evidence suggested that McCarthy had left of her own accord. Now, the story sounds different.
Disney CEO Bob Iger probably wanted McCarthy gone, so she’s out. And this change hints that Iger isn’t going anywhere anytime soon.
The Disney palace intrigue continues, and Bob Iger is probably staying. Here’s what we know.
There’s Room for 1,000. Any Volunteers?
Bob Iger has quietly started his own Haunted Mansion in the executive suite at Disney HQ.
With Christine McCarthy’s removal, the Iger Graveyard added another body.
McCarthy joins former Disney CFOs Jay Rasulo and Thomas O. Staggs in this cemetery of executives in shallow graves.
They might as well be the lost grooms in The Attic, with Iger as The Bride.
Bob Chapek has his own monument here and could very easily portray the Hatbox Ghost in a Disney C-suite comedy-horror.
That’s the drama we have casually watched unfold over the past decade.
Whenever Iger felt that Disney had taken a wrong turn, an executive lost their job.
If Disney needs a fall guy, Bob Iger will happily throw someone under the bus, and I say that with respect, not denigration.
The latest turn of events exemplifies his mastery in framing others for Disney’s high crimes.
On Thursday, Disney announced that McCarthy had stepped down due to a family medical leave crisis.
We’ve since learned that McCarthy’s husband has remained in a health facility since January.
However, McCarthy waited for nearly six months before choosing to end her Disney tenure, which struck many observers as suspicious.
On Friday, the Wall Street Journal published an article about McCarthy’s decision to leave.
This piece strongly hinted that McCarthy had no interest in leaving. Instead, she was forced out due to repeated clashes with – you guessed it! – Bob Iger.
In doing so, McCarthy learned the same lesson as all the executives who had come before her.
When you pick a fight with Bob Iger, you might as well update your resume, as your Disney tenure is coming to a close.
What We Know about the Squabble
The Wall Street Journal (WSJ) article shared the same vibe as a Deadline article from 2022 in which the reporter made a bold, patently absurd claim.
That piece quoted a Disney insider as saying Christine McCarthy had become the favorite to replace Bob Iger as CEO.
At the time, I speculated that the source was McCarthy herself or possibly an agent working on her behalf.
That same philosophy applies to the WSJ report, which relays McCarthy’s side of what happened.
Specifically, nobody knew McCarthy was leaving right until it happened, which usually means – you guessed it – Iger pushed her out.
According to the publication, McCarthy had pushed back on some initiatives that anyone with an understanding of Iger’s thinking would know not to do.
Iger believes in empowering creatives to control their own budgets, especially with Hollywood productions.
McCarthy, like Chapek, felt strongly that the money people should control the purse strings.
Iger’s autobiography emphasizes this point, and McCarthy had worked with the man long enough to know that.
Frankly, many of the comments in the article reinforce perceived notions about McCarthy, which is that she worked in lockstep with Chapek.
The two only split when McCarthy recognized that Chapek’s spreadsheet spelled doom.
So, she turned on him before he could throw her under the bus. And that’s what MickeyBlog had always believed had happened.
Now, we have comments to that effect. Also, WSJ’s source confirms that McCarthy was largely responsible for the elimination of Peter Rice.
That moment doubled as a bridge-burning for Chapek, who appeared insecure and threatened by Rice. It turns out someone else wanted Rice gone.
What was the cause of McCarthy’s frustration with Rice? Fiscal responsibility.
An industry veteran, Rice understood you must spend money to make money in Hollywood. McCarthy didn’t want that.
How All This Nonsense Impacts Iger
I should emphasize that McCarthy wanted her side of the story published, not fully understanding that she doesn’t come across well here.
Most egregiously, McCarthy didn’t want Disney C-suite executives unless they owned a lot of stock.
Otherwise, McCarthy felt they wouldn’t have enough skin in the game to care about Disney’s performance.
That’s as one-percenter as an executive can sound. Even in the Wall Street Journal, it sounds snooty and out of touch.
You can understand why Iger felt that McCarthy had reached the end of her Disney tenure.
While the former CFO had performed her job brilliantly for many years, she’d lost touch a bit and become more set in her ways.
Now, Iger can find someone to handle Disney’s books as the company approaches its digital future.
Iger spelled out that McCarthy’s replacement, Kevin Lansberry, is temporary.
Oddly, Lansberry will switch coasts and move to California to perform the job for a while. But Disney will search far and wide for its next CFO.
Once again, the debate will come down to a Hollywood type overly familiar with the high cost of digital content vs. a Wall Street type who emphasizes cash on hand.
Given how spectacularly Disney went wrong under Chapek and McCarthy, I expect Iger to choose a Hollywood CFO.
Poaching someone from Netflix wouldn’t surprise me. But this process should take a while.
That’s the vital part of this conversation. Once again, Iger has reset the clock on his CEO tenure by eliminating a CFO.
Why Iger Is Probably Staying Longer
Disney’s Board of Directors will struggle to find a CFO at the same time as a CEO.
For this reason, you should expect Iger to announce soon that he will extend his Disney tenure by another year or two.
When Iger returned, MickeyBlog immediately speculated that he may stay beyond his two years.
After all, Iger’s wife, Willow Bay, had previously extended her contract at the University of Southern California’s Annenberg School of Journalism for four years.
Iger clearly seemed bored and aimless while his wife was at work. Now, he’s back doing what he loves the most: impacting society via Disney.
Since Iger’s return, Disney has shown that it needs dramatic reshaping in the pandemic’s aftermath.
The CEO recently set Disney’s theatrical tentpole schedule through 2031, which is eight years from now.
In that manner, Iger extended his Disney imprint for another eight years.
I sincerely doubt the 72-year-old Iger will stay until he’s 80. Honestly, I think he may run for President in 2028.
However, this latest turn of events suggests that Iger probably stays beyond his expected departure date of November 2024.
What Happens Next?
My current belief is that Iger wants to clean up Disney’s finances enough that he can leave Josh D’Amaro with the job.
The Disney Parks Chairman would need a relatively clean balance sheet at the start, though.
Others believe that Dana Walden has emerged the favorite.
Personally, I don’t perceive Disney’s television and movie arms as doing well enough to justify that anytime soon.
With McCarthy out of the picture and a void at CFO, Iger can kick the can down the road on CEO succession, which is his one true skill as a leader.
You can check the Iger Graveyard if you don’t believe me.
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!
Feature Photo:Getty/Disney