Former Disney boss Bob Chapek was ousted after the CFO worked behind his back, according to a report
Robert Schein, CIO of wealth management at Blanke Schein, discusses what Disney’s management change could mean for its broadcast and theme park businesses, in ‘The Claman Countdown.’
Former Disney CEO Bob Chapek He was reportedly fired following actions by the company’s chief financial officer, who believed he was “incompetent.”
In a new report, The Wall Street Journal said that, after a boardroom showdown with CFO Christine McCarthy, a fight with Florida Governor Ron DeSantis, and the loss of billions of dollars at Disney’s streaming division, the leader lost the support of fans, executives and the company board alike.
According to the publication, the former president of Disney and CEO Bob Iger “undercuts his successor”, and it was “well established” that he was “unhappy with Chapek,” the report said, adding that he told confidants that Chapek was “doing a terrible job and was incompetent.”
Although Iger left Disney last year after more than a decade there, the newspaper said a Nov. 16 phone call from McCarthy, who was “fed up with Mr. Chapek’s performance and leadership,” was instrumental in that Iger would return to the top.
Two days later, according to The Wall Street Journal, The president of the board, Susan Arnold, offered him the job..
Bob Chapek attends the 94th Annual Academy Awards at Hollywood and Highland on March 27, 2022 in Hollywood, California. (David Livingston/Getty Images/Getty Images)
“This account of how Mr. Iger succeeded his successor is based on firsthand accounts from current and former Disney executives, as well as from people close to the company who are familiar with the events, actions and conversations leading up to the removal of Mr. Chapek”. he said he.
Detailed New York Times report Arnold’s phone call to Igerciting three people with knowledge of the matter, and the Financial Times said in November that McCarthy had approached the board to complain about Chapek’s leadership.
| Heart | Security | Latest | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY COMPANY. | 90.04 | -0.49 | -0.54% |
In June, the board renewed Chapek’s contract through 2024 in a unanimous vote, but in late September, The Wall Street Journal report said McCarthy told directors that Disney likely “would not meet analyst expectations.” in terms of revenue and profit in the coming quarter” and Chapek allegedly complained to colleagues that McCarthy had given numbers that had not been previously discussed,” leaving her out of an October board meeting.
On November 11, he had issued a memo freezing new hires.
Christine McCarthy, Senior Executive Vice President and Chief Financial Officer of The Walt Disney Co., listens during the Milken Institute Global Conference in Beverly Hills, California on April 29, 2019. (Kyle Grillot/Bloomberg via Getty Images/Getty Images)
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After two years on the job, during one of the most challenging periods in company history, the report said Chapek was out on November 20 and Iger, who had chosen Chapek as his successor, was back.
“The board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely positioned to lead the company through this crucial period,” said the board chair. , Susan Arnold, in a statement.
“We thank Bob Chapek for his service to Disney during his long career, including leading the company through the unprecedented challenges of the pandemic,” he said.
Robert Iger on November 18, 2021 in Los Angeles. (Rich Fury/Getty Images/Getty Images)
“It is with an incredible sense of gratitude and humility, and I must admit, a bit of amazement, that I write to you tonight with the news that I am returning to The Walt Disney Company as CEO,” Iger wrote. in an email to employees.
He would earn a base salary of $1 million, returning for two years.
“Disney and its incomparable brands and franchises They hold a special place in the hearts of so many people around the world, especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration,” the reinstated CEO said in a statement released by the company. ” I am deeply honored to be asked to return to lead this extraordinary team, with a clear mission focused on creative excellence to inspire generations through bold and unrivaled storytelling.”
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Iger noted that the company will begin to implement organizational and operational changes.
“It’s my intention to restructure things in a way that honors and respects creativity as the heart and soul of who we are,” he later told employees.
Disney’s FOX Business request for comment was not immediately responded to at the time of publication.
Eric Revell, Peter Aitken and The Associated Press of FOX Business contributed to this report.