How Disney History May Repeat Itself
Few Wall Street executives worry about their legacies as much as Bob Iger.
Upon retirement, Iger received his flowers as arguably the greatest living media CEO.


Photo: Deadline
But there’s one part of Iger’s story that people have forgotten over the years, a topic that may yet prove important.
Let’s discuss how Disney history may repeat itself.
A CEO Tenure Ends in Turmoil
You remember the end of this story, as Disney’s Board of Directors got rid of the current CEO.
In doing so, Disney cleared a path for Bob Iger to take the reins as the head of Disney.


Photo: Variety
But I’m not talking about the strange, unlikely events of November 2022.
No, I’m fixated on an earlier time in Disney history, one from 20 years ago.


Photo Credit: Michael Eisner via Twitter @Michael_Eisner
At that time, some would argue that Michael Eisner had run Disney better than anyone in the company’s history, save for Uncle Walt himself.
While Eisner’s tenure ended in controversy, let’s not overlook the highlights.


AAFP
During Eisner’s time as Disney CEO, the company:
- Acquired ABC and ESPN via the Capital Cities Merger
- Added Or Bought Nine Other Cable Channels
- Built Disney’s Animal Kingdom
- Built Disney California Adventure
- Built Disney’s Hollywood Studios
- Built Disneyland Paris
- Built Hong Kong Disneyland
- Created Disney Cruise Line
- Developed the Timeless Movies of the Disney Renaissance
- Licensed Tokyo Disney Resort
- Successfully Brought Disney Classics to Broadway


(AP Photo/Nick Ut)
Many of the greatest Disney triumphs of the 20th century occurred under Eisner’s watch.
The problem is that many of the best ones happened when Eisner was working with his friend, Frank Wells.


Photo: D23
In a tragedy, Wells died in a helicopter crash, and I’m not being melodramatic when I say that Eisner was never the same afterward.
The duo worked perfectly, with Wells keeping Eisner in check. Without a reliable sounding board, Eisner made epic mistakes.


Disney
Even some of the “successes” I just listed, such as Disneyland Paris and Disney California Adventure, most assuredly were not that at the time.
Disney gradually fixed them over time. In fact, that was one of Iger’s greatest achievements.
An Unwelcome Succession Plan
When Disney works well, that’s how the system functions. A successor elevates their predecessor’s work.
In Disney’s case, the Board of Directors deserves very little credit for how the 21st century unfolded.


Photo: Hollywood Walk of Fame
Former executives Roy E. Disney and Stanley P. Gold engaged in a civil war with Eisner, which ultimately led to his leaving the job.
Eisner’s final days at Disney were eerily similar to Iger’s after he’d announced his retirement.


Photo: D23
Both executives found their roles diminished as the Disney machine advanced without them.
Iger had expected then-CEO Bob Chapek to communicate with him, while Eisner became persona non grata by the end.


Photo: OC Register
Investors and Disney’s Board pushed out Eisner, who was wholly uninterested in leaving. It was an acrimonious turn.
Even more awkwardly, Eisner viewed Iger as an unworthy replacement.


Disney
Iger had worked under Eisner, and for whatever reason, Eisner never saw Iger’s leadership potential.
In Iger’s autobiography, The Ride of a Lifetime, he still sounds bemused about Eisner’s lack of faith.


Photo: Kevork Djansezian/Getty Images
After landing his dream job, Iger was nothing short of desperate to differentiate himself.
As a sports fan, Iger followed the tenet of some head coaches and managers.


NBC News
You can be the most aggressive at the start when the players know the least about you.
Iger faced a seemingly impossible problem, as Disney had lost the distribution rights to the Pixar films.


Photo: financial slot.com
An angry Steve Jobs had lost confidence in Eisner and decided to shop his content on the open market.
Iger boldly went to Jobs with an idea: Disney should buy Pixar.


Photo: Disney
That gambit paid off immediately, with Pixar becoming an anchor brand.
But Eisner never envisioned Iger as capable of pulling off such an epic triumph.
Have a Little Faith
Disney’s house seemingly consists entirely of glass ceilings.
Once executives excel at a certain spot, Disney tends to leave them there indefinitely.


Photo: Willow Bay on Instagram (via PEOPLE)
That’s the modern behavior under Iger. It wasn’t always the case, especially not under Eisner, who shuffled the board a lot.
Iger’s actions reflected his desire to hold onto his CEO job as long as humanly possible.


Photo: Walt Disney Company
Disney’s succession planning wasn’t fully formed because Iger didn’t really want it, which led to the grim reality of Chapek as CEO.
Nobody wants that, but it’s entirely avoidable. All that needs to happen is for Disney to have a little faith.


Photo: Variety
Currently, Disney has four worthy internal candidates plus two from previous succession discussions, Kevin Mayer and Thomas Staggs.
With James Gorman handling succession, outside candidates are in contention as well.


Photo: CNBC
But here’s the thing.
Every executive who has reached this level of Disney’s hierarchy should be capable of running a Fortune 500 company. They basically have already.


Photographer: Jesse Grant/Getty Images for Disney
You can earn placement on the Fortune 500 with annual revenue of $7.2 billion.
Every current Disney Co-Chairman/Chairman has handled a division of similar scale, as have Mayer and Staggs.


D23
Chapek had as well, which underscores that there’s no perfect choice. You never know how anyone will do in the spotlight.
Disney took a chance on the Eisner/Wells combo, and the decision worked perfectly until Wells’ death.


Photo: Charles Krupa/AP
Later, Disney rolled the dice with Iger, who was deemed anything but a safe bet. That worked out phenomenally well.
Then, the company spent the body of the 2010s searching for the perfect candidate, only to settle on…Bob Chapek.


Photo: AP Photo/Jae C. Hong
Stating the obvious, Mayer or Staggs would have been better because they literally couldn’t have been worse.
Believe in the Disney Flywheel
Loathe as I am to use one of the worst and most idiotic cliches in sports, Disney should trust the process here.
Iger hired these people and promoted many of them to Chairman.


Bob Iger – 2024 Annual Shareholder Meeting
They trained under the Iger coaching tree and know how the executive handles challenging circumstances.
Similarly, they’ve seen him glide smoothly down hills and fall into massive amounts of revenue.


Image: Disney
When the Disney Flywheel is functioning correctly, it’s a timeless money-making machine.
Many of these executives have spent decades at Disney, and even Dana Walden has worked there for more than five years.


Source: CNBC.com
They’ve watched Iger get things done, just as they’ve learned from Chapek’s mistakes…and even a few successes.
At this point, if none of them is ready to lead the entire company, Disney should pick an outsider.


Photo: TheWrap.com
That’s because, in that scenario, Iger would have proven that he’s physically incapable of mentoring his proteges effectively.
I simply do not believe that’s the case. As proof, I’d point toward the success Staggs and Mayer have had in running Candle Media.


GENE DUNCAN/DISNEY/GETTY IMAGES
While that company struggled in 2023, it’s exponentially more valuable than just a few years ago. They built it from the ground up.
That’s additional proof that the Iger Way works. But an entirely new philosophy would likely work as well.
How Disney History May Repeat Itself
As long as the person at the top trusts their lieutenants to do their jobs, Chapek’s greatest failing, running Disney isn’t as hard as it seems.
People want to love this brand. So, the next person simply needs to act similarly to Iger in his early days.


Photo: Disney
Be bold and daring, taking chances to future-proof the Disney Flywheel.
As long as someone does that, history should repeat itself.


Photo: Disney
I believe that the person in charge of Disney can succeed just as much as Iger did, presuming they’re willing to take chances.
In fact, I suspect the cause for Disney’s delay in choosing the next CEO is a desire to wait and see what happens next.


Photo: JIM CARCHIDI
D’Amaro is about to embark on a generational shift in Disney’s American theme park empire, redefining several spaces.
Should the first year of that process go well, he’s a stronger candidate.


Photo: Disney
Similarly, Chairman of the Board James Gorman will likely spend his first year on the job determining whether Dana Walden’s 2024 was a fluke.
There’s no debating that she’s had the best two-year stretch of any Disney Chairman, but Alan Bergman had an amazing 2024 as well.


Photo: Disney
Similarly, Jimmy Pitaro seems to have righted the ship at ESPN after a shaky couple of years.
Right now, every candidate looks good. Who knows what will happen to them in 2025, though?
Final Thoughts
I don’t worry about the short term, though. Disney executives should think in terms of decades.
The executive who demonstrates the willingness to focus on the future is the ideal pick.


(Charley Gallay / Getty Images for Disney)
Then, history will likely repeat itself with that individual succeeding, with or without the current CEO’s help.
Bob Iger’s very good at what he does, but I’m not prepared to call him a unicorn.


Mandatory Credit: Photo by JUSTIN LANE/EPA-EFE/Shutterstock
If Walt Disney can be (eventually) replaced at Disney, literally anyone can.
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