Disney announced Sunday night that Bob Iger, his successor in the position of CEO at Walt Disney Company, will be returning to his post immediately.
The stunning and unexpected move comes as Disney’s stock has dropped 41% since the beginning of the year, although every other entertainment stock has similarly dropped. The board’s radical decision follows by about a week Disney’s poor showing in Q3 earnings.
Iger has agreed to serve as Disney’s CEO for two years, with a mandate from the Board to set the strategic direction for renewed growth and work closely with it to develop a successor to lead the company at the completion of his term.
“We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic,”Susan Arnold, Chairman of Board. “The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period.”
“Mr. Iger has the deep respect of Disney’s senior leadership team, most of whom he worked closely with until his departure as executive chairman 11 months ago, and he is greatly admired by Disney employees worldwide–all of which will allow for a seamless transition of leadership,”She said.
Arnold serves as the Chairman of Board.
“I am extremely optimistic for the future of this great company and thrilled to be asked by the Board to return as its CEO,”Iger stated. “Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the globe—most especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration. I am deeply honored to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivaled, bold storytelling.”
After 15 years as Disney’s CEO, Iger is back. He oversaw the Disney acquisitions of Pixar Studios, Marvel Studios and Lucasfilm. He was a famously well-liked CEO — delaying his departure date multiple times — which stood in stark contrast to Chapek, whose decisions frequently rankled Disney employees, shareholders and fans.
Chapek was elected CEO in February 2020. Before that, he had been Chairman of Parks and Resorts and President of Consumer Products. His tenure was marred by numerous missteps. Scarlett Johansson filed a poorly managed lawsuit against Chapek over her salary related to the streaming release. “Black Widow.” Chapek also initially chose to stay mum about Florida’s “Don’t Say Gay”Many employees resent the bill.
Chapek recently announced that Disney would be cutting jobs and that they will not hire anymore employees in 2023.
Chapek was reaffirmed by the Disney board in June when they extended his contract by three year. The board decided to end the 2022 contract, but it was clear that they had other plans.
