Did Bob Chapek Ever Get To Really Be CEO Or Was It Bob Iger All Along?

Since Bob Iger returned as CEO last month, stories have been coming out that suggest he never left, and his interference caused a lot of issues with the ex-CEO Bob Chapek. Even now, many blame Bob Chapek for choices made under Bob Iger. Now, CNBC has talked to sources around the situation to give us all a look at the drama behind the C-suite doors.

CNBC compiled a timeline of what happened at the Walt Disney Company during the era of the Bobs. This information is second-hand and came from speaking to over two dozen people who were either at the events or were personally close to one or both men.

I have summarized much of it, but the full breakdown can be read HERE.

Most of it seems like Iger not wanting to let go, conflicting leadership and communication styles, and an odd issue with Bob Iger wanting to keep the “big office” because it had a shower that he wanted.

Bob Chapek worked closely with Bob Iger for years and has impressed the older Bob with his money-managing skills, earning him the nicknames “Bob Cheapek” and “Bob Cheapskate” with Disney fans. When Iger finally passed the torch, it was decided that Chapek would take over the company.

However, he mostly didn’t get to take over the company. Bob Iger was still there and was clearly in charge. This led to two years of conflict until Iger “left the company” but was allegedly still an “advisor.”

According to CNBC, Bob Chapek started to question if Bob Iger regretted his decision to step down as CEO almost immediately. Beginning with an instance at Disney’s Burbank studio where Iger called himself “Big Bob” and referred to Chapk as “Little Bob.

On the way from Los Angeles to Raleigh, North Carolina, for Disney’s annual meeting on March 10, 2020, Bob Iger informed Chapek that he would lead the meeting and not Bob Chapek, which was apparently news to Chapek.

The issues came down to varying styles in learning material. Before the meeting, Chapek was given a binder with information about areas where he lacked knowledge. He preferred to study and memorize, but Iger wanted to practice with questions instead. This later led Iger to allegedly tell others that this was the first moment he thought perhaps he had made a mistake in choosing Chapek.

According to the CNBC article, Iger seemingly could not let go of the position, even snapping at Chapek and McCarthy for holding a CEO/CFO meeting in his presence on another flight.

“These dueling perceptions that manifested themselves on that March round-trip flight — Chapek as bumbling and isolated; Iger as unwilling to give up control — would define the next 2½ years.”
In turn, all of this allegedly made Chapek openly question if Iger regretted stepping down.”

This was further compounded by Iger seemingly taking over again at the start of closures and issues due to the COVID-19 pandemic.

Bob Chapek allegedly wanted to furlough 100,000 Disney park employees after Walt Disney World shuttered, but Bob Iger wanted to wait until the government assistance was in place (I side with Iger on this one), and that’s what they did.

When news outlets reported that it seemed Iger was back in charge, and Iger didn’t deny it, Chapek got even more upset. I will admit we were also questioning why Iger was still in control and wouldn’t let Chapek do the job.

This allegedly led Bob Chapek to call Iger over the issue, including some foul language.

“Chapek was furious. He called Iger and told him he didn’t need a savior, dropping a carefully placed expletive or two, according to people with knowledge of the call. It was the first time in more than 20 years that Chapek and Iger had had a major argument. Iger would tell people no colleague had ever spoken to him like that before in his life.“

After this, Bob Chapek complained to Susan Arnold and the Disney Board about what was happening. This led Arnold to talk with Bob Iger about helping Chapek succeed instead of undermining his position.

This led to a larger rift where Iger was said to have been complaining about not being involved in decisions. Chapek started to take more control.

From there, Chapek implemented DMED, Disney Media and Entertainment Distribution, a restructuring Bob Iger recently undone.

During this time, it seems Chapek would visit Iger at his home to discuss the situation and keep him involved. Iger was allegedly very “opaque” to Chapek. Allegedly, this made the new CEO question the intent. Meanwhile, inside Disney, the other executives saw this as Chapek trying to shift power away from those loyal to Iger. When Iger came back, it came across that he did the same.

It seemed that Iger’s people were complaining to him the whole time. The Bobs dynamic was becoming more and more strained.

“Throughout all this, executives who had lost power under the new structure were frantically complaining to Iger, who told them he didn’t agree with the reorganization — an assessment Chapek heard only indirectly — but that there was little he could do.

Many veteran Disney creative executives viewed the reorganization as an example of poor decision-making. Chapek loyalists saw it as a necessary change to modernize Disney, which they felt was being sabotaged by petulant TV and movie executives, with Iger’s tacit backing, according to people who were directly involved in the reorganization.“

When Iger finally was ‘leaving,” he held a farewell party at his home, and tensions between the Bobs were high. But after Iger was gone, Chapek used the opportunity to make some staffing changes, which led to other executives also leaving the company.

Shortly after Iger left, Chapek became embroiled in the battle with Florida’s Governor Ron DeSantis over the Parental Rights in Education bill. Initially, Chapek stayed out of it, following the new PR strategy that was set up by himself and the new chief of corporate affairs, Geoff Morrell.

The new strategy was to stay out of politics as much as possible, mainly for China. Frankly, it’s a good strategy that more companies should follow, but Susan Arnold and the Disney Board wanted to walk it back to save the company brand. The success of that decision is up for debate.

It seems that Chapek was forced to walk it back, and when that didn’t work, Arnold allegedly demanded Chapek apologize. Iger made public digs at the situation, and Chapek fired Morrell.

This indicates that the Disney Board put Disney in the position they are not in with Florida. Ex-Chairman of the Board, Susan Arnold had a seeming personal interest in the situation with the Florida bill and apparently leveraged the company over it. Now Disney lost the Reedy Creek Improvement District.

While all this was happening, Iger was allegedly trying to return.

“Privately, Iger continued to talk with past and present Disney executives about Chapek and the company’s future, with several urging him to return to Disney, according to people familiar with those conversations.”

Then, the company started to falter as its stock began to decline, and investors wanted more than just Disney+ subscriber growth. CFO Christine McCarthy started to shift away from Chapek. Where they would generally coordinate and present information in a unified way, she began to present information that wasn’t discussed with Chapek beforehand.

The information allegedly caught Chapek off guard, and everything started to fall apart afterward. He wasn’t apologetic enough on the earnings call and didn’t focus on the drops but instead focused on positive news like the response to Disneyland’s Halloween offering. Then he was reportedly advised not to release “Strange World” but did so anyway to not further anger the LGBTQ+ community. The film was terribly received.

Allegedly, people once again rushed to Bob Iger, who reportedly told them to complain to the board “en masse.”

“In a highly unusual move, board members also set up discussions with Disney division heads, who rarely speak to directors outside formal meetings. Schake, McCarthy, Gutierrez, Walden, Bergman and D’Amaro all told either Arnold, Mark Parker or the entire Board that they no longer supported Chapek as CEO, according to people familiar with discussions. All declined to comment.“

This led to the Board deciding to call back Bob Iger and fired Bob Chapek. Chapek wasn’t even allowed to send an email telling people, “Goodbye.”

Frankly, as much as I didn’t like Bob “Paycheck,” how this all went down looks unfair.

He was never given the transitional training by Bob Iger, and it seems like Iger spent the entire time regretting his decision to step down and wanting to return to the company.

Chapek was also blamed for many choices Iger made, including Genie+. He was seemingly made to walk back his stance to avoid getting involved in Florida politics, which was a huge mistake.

Since Iger’s return, it has all gotten worse. Now, the Disney stock has hit a 9-year low. Chapek’s plan to furlough employees to stop the bloat was met with push-back, but Iger returned and did the same thing.

But we can’t overlook the accusations from investors that Bob Chapek and his executives shuffled money around leading to lawsuits. I can tell you companies do this often, but it doesn’t make it okay.

According to CNBC, while almost everyone refused to comment on the situation, Bob Chapek’s spokesperson did give a statement.

“Bob is proud of the work he did in the course of his 30-year career at Disney, particularly during his nearly three-year run as CEO, steering the company through the unprecedented challenges of the pandemic, and setting the course for business transformation as he and his team took the disruptive yet necessary steps for business revitalization and long-term growth.“

What do you think? Comment and let us know!

Source: CNBC