In early 2020, Bob Iger stepped down and Disney suddenly had a new CEO — Bob Chapek, and it turns out there are some parts of that transition that former CEO Bob Iger regrets.
©Reuters
The announcement of Bob Chapek’s selection and the start of his term happened very quickly, and within the upcoming months/years Chapek would have to face the pandemic, the closure of Disney’s theme parks around the world, changing theatrical releases, the Florida Parental Rights in Education Bill (what critics call the “Don’t Say Gay” bill), and more. Now, Iger has officially left Disney and Chapek will be sticking around for several more years. But it seems Iger may have some big regrets about how this all played out.
According to Business Insider, Iger thought that he’d spend his last year as CEO of the Walt Disney Company on a sort-of “goodbye tour.” Instead, Iger ended up spending 2020 and 2021 watching the Company face the impacts of COVID-19.
Several Disney sources and people who are “familiar with Iger’s thinking” have indicated that Iger also spent that time period “regretting what he has called one of his worst business decisions: the selection of Bob Chapek as his successor.”
Bob Chapek and Bob Iger at Cinderella Castle
Iger’s departure from Disney’s CEO position was rather sudden and surprising. Iger was set to stay on as CEO through 2021, but he moved up the timeline to the surprise of even Disney’s board. According to one Disney executive, Iger “got tired of all the things you have to do” and instead wanted to “play around with creative” and not focus as much on the business side of things.
But others have disputed this. One person familiar with Iger’s thinking said that Iger just felt “the company was in good shape for a handoff.”
Iger himself has commented on his departure and said that he felt it was time because he was feeling like he was starting to listen “less and maybe with a little less tolerance of other people’s opinions, maybe because of getting a little bit more overconfident in [his] own.”
Bob Iger ©New York Post
Insider notes that it was Iger’s intention to mentor Chapek as his successor, particularly as the situation with COVID-19 continued to develop. But, the transition didn’t exactly go to plan. An individual who is familiar with Iger’s thinking even noted that Iger remains unhappy with how the transition of power was handled.
Reportedly, Chapek and Iger had different ideas on how to handle the COVID-19 situation, how Disney should be structured as a company, and where Disney’s politics should be. Reportedly, Iger and Chapek even had “different corporate advisory teams, sometimes working against each other.”
Bob Chapek
CNBC has also shared that the relationship between Iger and Chapek is awkward, as the two have had a “falling out” and rarely talk. Reportedly, things started back in early 2020 when Iger (having already left the CEO position) indicated that the COVID-19 crisis would “necessarily result in [him] actively helping [Chapek] and the company content with it.” Reportedly, Chapek was “furious” when he read this story, as he “had not expressed a need or desire for extra help.” An executive familiar with Chapek’s thinking said that this statement from Iger came as “a slap in the face.”
Days after the story with Iger’s statement was published in a column, Disney “accelerated its timeline and named Chapek to its board.” Since then, Iger and Chapek hadn’t really been able to fix their relationship, according to individuals familiar with the matter.
©Alberto E. Rodriguez / Getty Images
According to Business Insider, Iger’s relationship with the Board of Directors had also been less-than-ideal sometime before he stepped down. It seems the Board kept pushing Iger for more details on his succession plan. Iger reportedly pushed for Chapek as CEO, despite other candidates being tossed around.
A former Disney executive indicated that in the years before Iger left, Iger started to feel like he wasn’t being fully appreciated as a leader by the board. “He said he was tired of being harangued about [succession] and said, ‘Fine, you guys have someone else run the business.'”
According to one former Disney executive, if Iger had “known and understood the scope of the pandemic, he never would have stepped down when he did.”
Bob Iger ©Bloomberg
The transition of power from Iger to Chapek got complicated once things were in motion. The Board of Directors began backing Chapek’s decisions and plans, rather than sticking to the original agreement where Iger would provide more mentorship to Chapek as his successor. Some have noted that the transition was not smooth.
Iger has even indicated his disagreement with some of Chapek’s decisions, sometimes privately and sometimes more publically. For example, when it came to the situation with Florida’s “Don’t Say Gay” bill, Iger spoke out against the bill rather early on. In discussing why he spoke out, Iger said that corporate leaders should “wade into major issues” because “a lot of these issues are not necessarily political. It’s about right and wrong.”
This stands in contrast to Chapek’s initial decision to remain quiet on the issue, Disney’s refusal to issue a corporate statement, and Chapek’s indication that corporate statements can be “weaponized by one side or the other to further divide and inflame.” Ultimately, Disney changed its tune. Chapek later shared an official look at the Company’s stance on the Bill, apologized for not being a stronger ally to the LGBTQ community, and promised further action.
Bob Chapek
According to a former Disney executive, Iger has said that he didn’t realize Chapek was “such a ‘novice’ when it came to handling complex issues like talent management and political battles, and that Chapek was arrogant and uninterested in other people’s opinions.”
But that doesn’t mean Iger wants Disney to fail. According to a person familiar with Iger’s thinking, he’s still rooting for Disney to succeed, no matter who is leading the ship. Friends say Iger also still gives notes on movies and talks to executives at Disney.
©CNBC
Where do things stand now? Well, Iger has officially left Disney entirely and is pursuing other business ventures, but again staying in contact with some executives at the Company, according to certain sources. Chapek, on the other hand, has had his contract as CEO extended for another 3 years, and details on his annual bonus have been revealed, so it seems he’ll be sticking around for a bit longer.
How long Chapek will ultimately stick around remains to be seen. Who will take over when Chapek’s contract as CEO is up? What will that transition of power look like? Only time will tell. We’ll continue to keep an eye out for more updates and let you know what we find.
©Disney
In the meantime, you can click here to see Chapek’s comments on the metaverse, or click here to see Iger’s thoughts on the same topic. You can also click here to see what Chapek has had to say about increasing prices in the parks or click here for Iger’s views on the news and the media. Stay tuned for more Disney news.
Click here to see Bob Chapek’s comments on the Park Pass Reservation System
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So Disney wants everyone to use their app, that’s fine, but they need stronger AND working wifi. Rise of the resistance was not worth the price. Also beware Disney world is having a lot of ride shut downs. If the ratatouille ride says 75min for stand by it’s really 120+ minutes. Really wish they’d go back to 3 lighting line passes per day, we spent more time in line and walking back and forth. Be our guest restaurant oversalts the food. Dfb videos need a segment on wheelchair and ecv mobility and handicapped riding the rides
I’m sure Walt is turning over in his grave the way this man is running Disney into the ground!
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Iger still has a lot influence and pull. It would be great if he would that power and influence and convince the board to fire Chapek.
Bob Iger spent $90B in acquisitions, not counting all the other “smaller” transactions that were less than a billion since the year 2000. The biggest one was 21st Century Fox at $71.3B which was purchase in 2019. Disney also has raised an additional $11B thru bond sales which have various due dates. In other words, Disney has a very heavy debt load right now that needs to be pared down. The reason I believe the Board extended Chapek’s contract was to have someone to run the company to be more profitable especially with the streaming service that is the future of the company.
I want a Disney CEO who cares more about the name of Disney and what is stands for than making money
Walt would be turning in his grave. Walt always put guest experience at the top of his list of priorities. Those values are becoming lost
Fire Mr Chapek and bring in someone that actually cares about Disney (like Walt Disney did). We are tired of the direction he has taken the company.
What a tragedy. Iger was being pushed out by the board and no one seems to belly up to the bar as to why he left so quickly. As for Chepak, there is a growing anxiety amongst the masses, both from inside cast members and more so with the informed Disney guests and supporters. I was very disappointed when he was offered a 3 year extension and pray that there will be anything left when he is finished. I am a DVC member and have not reduced my visits to Disney to stying at a resort but not going to the parks. My 32 year old daughter, who began he visits to WDW when she was 6 months old has remarked to me that her days at WDW with her 1 year old are not to be. The Magic is gone as the continued transition to a Thrill Park from of a Theme park is well under way and we can all blame Bob Iger for that. Very sad. If I wanted to turn Disney into Universal, I would have just gone to Universal. Disney was always so much more but now it is being pillaged and priced out of site. Not what Walt wanted.
We all regret it!!!!
Iger cared about continuing Walt’s legacy of making the Parks accessible to families and creating experiences. Chapek is simply a businessman wanting to nickle and dime everyone. It’s sad the direction of Disney.
Well to be candid Iger didn’t really perform any heroic park improvements when he was in place. I think Chapek is doing even worse, but it’s been along time since a CEO has competently improved the park experience. With each successive dynasty they try to bring more innovation, but in this case innovation means squeeze more money out of the average consumer while providing a more lackluster experience. What a pity, but this company at this point could be looked at as a case study by business schools in how not to run a company.
I agree. Poor Walt. Poor us. Iger is not the only one that regrets leaving Chapek in charge. Is there a way us stockholders can impeach Chapek? I’d sell every share right now if I could afford the loss.
This doesn’t seem surprising. Many were extremely disappointed with the selection of Chapek. He is an operations person with a focus on efficiency and increasing per capita spend, achieved by raising prices. He also strikes me as someone who is arrogant and didn’t want help from Iger. Anyone smart leader would have taken all the help Iger was willing to give considering the level of success the company had during his tenure, solid relationships with media and the ability to navigate political waters (building in Shanghai is something few could have ever pulled off). Instead Chapek’s ego got in the way.
Many may criticize Iger, but he was a polished face of the company and was charismatic. His ability when taking questions from the audience at the shareholder’s meeting was impressive. I dread seeing Chapek with a microphone. He has the warmth and sincerity of a piece of drywall.
The situation this year in Florida was the perfect example of the difference between these two. I’m convinced the mess with the governor and Reedy Creek never would have occurred with Iger. It was extremely disappointing that the board extended Chapek’s contract. He was the wrong choice at the wrong time.
While people were excited to get Michael Eisner out, I don’t think anyone would disagree that the company experienced an amazing turnaround at that time and creativity was at a high. The company only became stronger under Iger in parks, media and entertainment (Star Wars, Marvel, Disney+, etc.). I anticipate we will all look back at the Chapek era as one of the darker times for the company.
Iger had enough respect for Walt and the history of the company that he got the rights back to Oswald. It wasn’t because Oswald was going to be profitable for Disney, but rather because he belonged back with Disney. Would Chapek have even cared to give it a thought?
OOOF I am certainly no fan of Chapek. Everything feels slimy now. All a money grab, when I was happy to give it. Sorry Iger, this decision sucked. I don’t want to vacation with my phone in my face – I was stressed out, pissed off, and frustrated. For that, I would have just stayed at work and saved $3000.
And the Board loves him. They finely have an accountant making decisions. It’s no longer “The Most Magical Place on Earth” it’s The Most Moneyest Place on Earth. The new equation is money over guests. Chapek will march them into mediocracy…DisneyWorld-Your Average Amusement Park.
p.s. I agree with Iger about the worst business decision ever.
Dude Join the crowd !!!! He is single handedly destroying DisneyWorld. !!!! But what do they do?! Give him another extension for his job and millions more money !!!! Sick !!!
” …Chapek was arrogant and uninterested in other people’s opinions.” = the condition we’re in now.
We don’t need a ” voice”at the helm of this ship.
A lot of guests are regretting your choice for CEO as well. I will not got back to Disney until Disney is what Walt made it to be. As a family, we’ve been going for the past 25 years. The Magic is gone, it’s overpriced for what you get and the moral and values that the current executives are sending out in their messaging is not a family friendly atmosphere.. Praying that it changes for the better for future generations.
Though I do not know Keith, who previously commented, I also echo what he wrote. I also believe Chapek being made CEO was an enormous mistake-I absolutely abhor the changes he made and increased prices; making it feel that the ultra rich and elite will be the only types of people to visit their theme parks and other resorts. I recently had visited Aulani just to see the grounds and I was absolutely disgusted what they are charging to guests for a nightly rate. I’ve always wanted my husband and I to take our son but that possibility is looking less and less likely. Disney has always been an enormous part of my life, especially the vintage Mickey Mouse and his gang cartoons. Though I still love Mickey Mouse, I now feel more inclined to give Universal Studios my business once we have the opportunity to visit.
The board should be ashamed of their selfs for allowing Chapek to stay on and continue to run Disney in the ground. It all boils down to greed and to heck with the customer. This will backfire on all of them as long as this man and his ideas are accepted by the executives.
Iger did a much better job of running Disney and keeping the people happy. The executives are fools to let Iger go like they did.
D’ya think?!!
Iger did a great job leading Disney and he’s right to be disappointed in his successor. If he held stock options as part of his compensation scheme he’s watched them become worthless. The market over the medium term is usually a pretty good judge of leadership and Chapek’s allowing his underlings to drive the company full-on Woke shows a distinct failure of leadership.
Bob regrets having Paycheck as CEO…ya think??? So do most Disney goers! When the bad decisions hit the co pocket book enough he’ll be gone!
Then why was his contract extended another 3 years? I can’t believe anyone is happy with all the unfavorable changes.
Dear Mr. Iger,
Now that you are in charge, dismiss Bob Chapek.
Sincerely, a former cast member
If Iger is against him, Chapek’s gotta be doing something right.
I’m sure Walt is definitely turning over in his grave the way his company is being ruined!
I would love to see BoB Iger come back. We personally feel he did the best job, it really has gone down hill with the new guy.
Not a fan all all the new things that have been added to already high prices most people. Its hard for people with big families to afford disney.
All Disney shareholders regret this choice. ?
Iger Said it all. “Chapek is arrogant and uninterested in other peoples opinions”.So it makes me think that no matter what people write in he doesn’t care and it has no bearing on what he does. The only way anything will make a difference to him is a negative in his pocket
A lot of the nickel and diming and doing away with perks started under Iger so he’s no prize. I blame the both of them for the negative changes. Disney’s reputation is not what it was and it’s both their faults.
Disney really needs to think long and hard about all the disastrous decisions that have been made since the Pandemic shutdown. I firmly believe Walt would have gone out of his way to bring back the magic after the reopening. He would have known that this was a critical time period for most average income Guests, world wide. He would have wanted to make things easier. He would have wanted guests, not consumers, to feel welcomed and valued. He would not have taken away and/or discontinued the things his guests treasured and depended upon. He would have opened his arms and said come back. We have missed you. Let’s make more magic together. Instead, who is in charge? A bean counter with no empathy who considers us consumers with bottomless pockets! It is just so darn sad! Where has all the pixie dust gone?
It’s a disappointing Disney now. As a company matures over the years it has to endure changes. Nothing can stay the same. That being said, most of the changes are more than disappointing and a slap in the face to those who have loved and supported it for decades. I am disappointed and angry as a DVC owner let alone as a fan.
Disney has lost its magic, plain and simple.
I don’t think anyone knows what Walt would think of all this. But I do think he would not appreciate anyone thinking for him after his death.
Impossible to plan your day given the current operating model, glued to your phone. Bring back fastpass with the 3 month booking window for on site guests! Also 6 months out for RSVP’s !!!
Bob Chapek is ruining disney with all the charges he is making. Its OK for the shareholders might be happy., but its not what Walt designed disney world for. It was supposed to be for everyone not the chosen few people.
Ditto on Walt turning over in his grave. Chapek only cares about making money! and, the board as well. Disney world is crowded because, of Floridians that already have annual passes! I know a Disney World vacation is expensive but, prior to Chapek, worth every penny! Magical Express your luggage Magically showing up in your room! Priceless!!. Now it’s more money and, less perks. I love Disney World but this Man has to go.
Name one thing that’s improved over the last 2 years at Disney!
Well, it’s too late now BOB! You worked with Chapek how many years and didn’t know that he’s clueless. So, we are stuck with him now. The Disney company is the Titanic heading toward the iceberg and it’s too late to turn now. The parks in particular will never recover from the damage being done.
I am so very very sad and frustrated…I’m a former cast member, and becoming a former Disney lover…the magic is going away for sure! So very expensive and ridiculously hard to navigate the parks w/phone in face all day! It’s heartbreaking…
I had one thing to look forward to in my life that always got me through life’s difficult times and that was planning and looking forward to my next trip to Disney World. Now that’s gone. Who ever heard of a vacation where everything, food, activities, etc. are dictated by your phone. There’s no spontaneity, magic, freedom of thought, or ability to change your plans according to the weather or nap time, etc. That’s not a vacation, it’s a basic training program.
Does this ceo have a contract with an end date Hopefully at the end of his contract they can get rid of him