The sudden firing of Disney CEO Bob Chapek was a long time coming—as board members worked for months to undermine his authority and change the direction of the company.
Key Details
- The business world was surprised Sunday night by the sudden ousting of Disney CEO Bob Chapek and his replacement with previous CEO Bob Iger.
- The ousting was brought about by a campaign of board members undermining his authority over the past several months and came to fruition following Disney’s negative third-quarter report.
- Iger, who retired after 15 years leading Disney, was approached on Friday to consider returning to the board. He has been signed to a two-year contract to help the company train a new CEO, effective immediately.
- Chapek’s time as CEO was met with conflict and decreasing revenue, with the company poorly handling a public spat against Florida Governor Ron DeSantis, firing several popular executives, and a 40% decrease in stock value in 2022.
Why it’s News
Disney’s senior staff worked to undermine Chapek’s position over the past several months as they identified Chapek’s leadership decisions and management as a negative direction for the company. The negative earnings report was enough to bring the ousting to fruition.
“Senior figures within the company’s top brass including finance chief Christine McCarthy started to warn boardroom directors over the summer that the entertainment giant was heading in the wrong direction and campaigned for him to go,” says Fortune.
“The campaign to undermine Chapek’s authority eventually bore fruit after the CEO announced earlier this month ‘tough and uncomfortable decisions’ that would include staff cuts after its [Direct-To-Consumer] division reported losses more than doubled to $4 billion for the fiscal year ending October 1 amid soaring content costs,” it continues.
Disney’s stocks rallied after the ousting by nearly 8% on Monday, with investors applauding the move as a positive direction for the company.
Notable Quote
“It is with an incredible sense of gratitude and humility—and, I must admit, a bit of amazement—that I write to you this evening with the news that I am returning to The Walt Disney Company as Chief Executive Officer,” says Iger.
