An additional former Disney executive pointed out that Chapek prefers to make decisions than listen to and then respond. “Running Disney is like running a small nation state,”This executive stated it. “It requires so many different skill sets independent of running a successful entertainment multinational, including complicated politics and international diplomacy.”
What’s noteworthy is how Chapek — who has been CEO for slightly more than two years (with predecessor Bob Iger as chairman for much of 2020) — appears to have misread some of Disney’s core values, the individual said. “This is deeply personal and emotional,”Chapek was mentioned by the second ex-executive. “has revealed that he is out of touch and out of step with many employees inside the company and many artists and creatives who work with the company.”
The “Don’t Say Gay” mess spun quickly into a PR disaster for Disney despite its efforts to keep the issue under the radar – and under control. Disney issued statements on March 4 and March 7 expressing support for its own LGBTQ community as internal protests arose over so-called “Don’t Say Gay”Legislation that bans “classroom discussion about sexual orientation or gender identity” in Florida — and over Disney’s donations to the Florida politicians who backed it.
Chapek insistent on remaining out of politics as he stated in a memo to his staff that he did so just a week ago. “Corporate statements do very little to change outcomes or minds. Instead, they are often weaponized by one side or the other to further divide and inflame.”
That didn’t go over well with Disney’s large and vocal LGBTQ community – both executives WithinAs well as the company outside talent who frequently work with the studio – who made numerous public statements expressing their dismay over the company’s lack of response. Some also contradicted Chapek’s claims, noting that lobbying from then-CEO Bob Iger in 2016 helped persuade then-Georgia Governor Nathan DealTo vetoA bill would have allowed faith-based organisations to refuse to provide services to LGBTQ+ persons who might offend their religious beliefs.
And it did not help Chapek’s case that Iger — who exited as chairman of the board last December — tweeted his own opposition to the legislation.
Chapek’s initial explanation for trying to stay out of the fray, along with his $5 million check to the LGBTQ advocacy group Human Rights Campaign – only seemed to frustrate employees more. The nonprofit then threw the check in his face. Chapek issued an apology on Friday. “I let you down,”He wrote. “I am sorry.”
Many described the apology as sincere, but they also pointed out that it came too late, under too much internal pressure and — most of all — AfterLast Tuesday, the bill had passed. (And Florida’s Republican Governor, Ron DeSantis, not only signaled he would sign the bill but mocked “Woke Disney”(For its tardive lobbying efforts.)
Disney insiders explained that the government affairs team had been trying to avoid open warfare over cultural politics by working diligently behind the scenes to modify the bill’s language so it addressed sexual activity and not sexual and gender orientation. They insisted that Disney stood behind its record of support for LGBTQ communities. “Many companies give lip service to issues and no action,”One Disney Insider stated. “We were in action from the outset, but reluctant to speak about it for fear it would undermine our efforts to stop the bill by igniting a partisan firestorm.”
However, the Orlando Sentinel,Disney isn’t registered to lobby the “Don’t Say Gay”According to legislative records the bill was passed, but lobbyists have been deployed by the company to support other Tallahassee legislation like a bill to expand tax incentives for streaming and TV.
In any event, Disney’s efforts achieved the opposite result. Trenchant Disney critic Abigail Disney tweeted: “The worst kind of PR bungle is the one where everyone ends up angry at you. Chapek tried to make nice with conservatives, then he tried to thread the needle with LGBTQ+ folks which only aggravated them because it was so patently insincere so now there’s a genuine apology which gets him precisely the reaction he was trying to avoid: being dismissed by the governor whose ass he was kissing ad (sic) “woke.’”
Some of this chaos is simply American business’ new normal, where companies can quickly vent on social media and publically over private grievances.
The response made Disney observers wonder if Chapek has the right skills to lead the entertainment company at a time when there is intense cultural polarization.
According to two insiders, Chapek relies on a small group of advisers to make decisions, including chief of staff Arthur Bochner, a former Republican Party operative and communications official for George W. Bush; chairman of Disney Media and Entertainment Distribution Kareem Daniel; and Geoff Morrell, Disney’s new Chief Corporate Affairs Officer, an ABC News correspondent who served as spokesman for the Pentagon under George W. Bush and Barack Obama and later for British Petroleum.
An insider at Disney noted that Chapek had consulted with other executives regarding this issue, including legal and human resources as well as diversity, inclusion, and legal issues.
Chapek’s small council approach to leading DIsney is quite different from Iger’s. Iger was consultative at every level of the business throughout his 15 years as CEO. This included everything from the entry-level to the highest-flying business deals to the relationships with white-glove talents.
Chapek was, however, a former executive who stated that he disagreed. “is command and control.”
This trait was evident in the other major PR disaster under Chapek’s leadership, when the company publicly clashed with “Black Widow” star Scarlett Johannson last summer after the studio moved the big-budget Marvel Studios release from a theatrical release to a Disney+ streaming exclusive — without negotiating a make-good for the star’s box office-based bonus package.
Not only did Disney spurn the star’s demand for compensation after altering the film’s release plans, it slammed her publicly when she sued over the matter, calling her out for a “callous disregard for the horrific and prolonged global effects of the COVID-19 pandemic.”(The settlement was reached by both sides.)
Insiders See the “Don’t Say Gay”PR mistakes are an echo of this earlier error. “It’s really the same thing,”The second ex-executive said it. “Hubris – believing one can impose one’s own control and order on a disrupted world.”
Unsurprisingly, some Disney executives dispute these negative characterizations of Chapek’s leadership — and insist the new CEO is fully committed to his employees. They point out that Chapek is putting his own singular stamp on the company to drive growth, reorganizing the business operations under Daniels’ Disney Media & Entertainment Distribution group and pursuing several moves that Iger had publicly resisted: Those include putting R-rated content on Disney+ and exploring sports betting deals for ESPN as the cable network continued to lose viewers.
However, Wall Street and the Disney board will be aware of the impact of this. Wall Street has been hard at work lately, having hammered Disney stock after the company reported a slowdown of growth for Disney+ streaming. (In the past year, the share prices have dropped by 33% and closed Friday at $131.75.
Chapek still has a chance to show that he can be a leader in the future.
“If the stock goes up, all is forgotten if not forgiven,”The first ex-executive said it. “If it doesn’t, there will be a change.”
Drew Taylor contributed to the report.
