Bob Iger Stepping Down as Disney CEO, Effective Immediately
The Walt Disney Company just announced that Bob Iger is stepping down as Disney CEO, and will assume the role of Executive Chairman. Bob Chapek, who was Chairman of Disney Parks, Experiences & Products up until now, has been named the new Chief Executive Officer by TWDC’s Board of Directors.
Per Disney, Bob Iger will direct creative endeavors, lead the Board of Directors, provide the full benefit of his experience, and work towards ensuring a smooth and successful transition for the next two years–through the end of his contract on December 31, 2021.
This is nothing short of stunning news. In this post, we’ll share the Walt Disney Company’s press release about new CEO Bob Chapek and the transition between outgoing CEO Bob Iger and Chapek. Finally, we’ll offer commentary about this bombshell (scroll down to “Our Commentary” if you don’t care about or have already read the details), including how this could impact Walt Disney World and Disneyland…
In Mr. Chapek’s new role as CEO, he will directly oversee all of the Company’s business segments and corporate functions. Mr. Chapek will report to the Executive Chairman, Mr. Iger, and the Board of Directors. He will be appointed to the Walt Disney Company’s Board of Directors at a later date.
A new head of Disney Parks, Experiences and Products will also be named at a future time. Mr. Chapek served as Chairman of Disney Parks, Experiences and Products since the segment’s creation. Prior to that, Mr. Chapek was Chairman of Walt Disney Parks and Resorts.
In offering statements about the change, Bob Iger said that “With the successful launch of Disney’s direct-to-consumer businesses and the integration of Twenty-First Century Fox well underway, I believe this is the optimal time to transition to a new CEO.
I have the utmost confidence in Bob and look forward to working closely with him over the next 22 months as he assumes this new role and delves deeper into Disney’s multifaceted global businesses and operations, while I continue to focus on the Company’s creative endeavors.”
Mr. Iger added: “Bob will be the seventh CEO in Disney’s nearly 100-year history, and he has proven himself exceptionally qualified to lead the Company into its next century. Throughout his career, Bob has led with integrity and conviction, always respecting Disney’s rich legacy while at the same time taking smart, innovative risks for the future.
His success over the past 27 years reflects his visionary leadership and the strong business growth and stellar results he has consistently achieved in his roles at Parks, Consumer Products and the Studio. Under Bob’s leadership as CEO, our portfolio of great businesses and our amazing and talented people will continue to serve the Company and its shareholders well for years to come.”
“I am incredibly honored and humbled to assume the role of CEO of what I truly believe is the greatest company in the world, and to lead our exceptionally talented and dedicated cast members and employees,” Mr. Chapek said. “Bob Iger has built Disney into the most admired and successful media and entertainment company, and I have been lucky to enjoy a front-row seat as a member of his leadership team.
I share his commitment to creative excellence, technological innovation and international 2 expansion, and I will continue to embrace these same strategic pillars going forward. Everything we have achieved thus far serves as a solid foundation for further creative storytelling, bold innovation and thoughtful risk-taking.”
Susan Arnold, independent Lead Director of the Disney Board, said, “The Board has been actively engaged in succession planning for the past several years, and after consideration of internal and external candidates, we unanimously elected Bob Chapek as the next CEO of The Walt Disney Company.
Mr. Chapek has shown outstanding leadership and a proven ability to deliver strong results across a wide array of businesses, and his tremendous understanding of the breadth and depth of the Company and appreciation for the special connection between Disney and its consumers makes him the perfect choice as the next CEO.
“Mr. Chapek will also benefit from the guidance of one of the world’s most esteemed and successful business leaders, Bob Iger,” Ms. Arnold continued. “Over the past 15- plus years as CEO, Mr. Iger has transformed The Walt Disney Company, building on the Company’s history of great storytelling with the acquisitions of Pixar, Marvel, Lucasfilm and Twenty-First Century Fox and increasing the Company’s market capitalization fivefold.
Disney has reached unparalleled financial and creative heights thanks to Mr. Iger’s strong leadership and clear strategic vision. We believe Mr. Chapek’s leadership and commitment to this strategy will ensure that the Company continues to create significant value for our shareholders in the years ahead.”
As Chairman of Disney Parks, Experiences and Products, Mr. Chapek oversaw the Company’s largest business segment, with operations around the globe and more than 170,000 employees worldwide. The segment includes Disney’s iconic travel and leisure businesses, encompassing six resort destinations in the United States, Europe and Asia, a top-rated cruise line, a popular vacation ownership program, and an award-winning guided family adventure business.
Disney’s global consumer products operations include the world’s leading licensing business across toys, apparel, home goods, digital games and apps, the world’s largest children’s print publisher, Disney store locations around the world, and the shopDisney e-commerce platform.
During his tenure at the Parks segment, Mr. Chapek oversaw the opening of Disney’s first theme park and resort in mainland China, Shanghai Disney Resort; the addition of numerous guest offerings across Disney’s six resort destinations in the U.S., Europe and Asia, including the creation of the new Star Wars: Galaxy’s Edge lands at Disneyland and Walt Disney World and the addition of Marvel-inspired attractions around the globe; and the expansion of Disney Cruise Line with the announced construction of three new ships.
From 2011 to 2015, Mr. Chapek was President of the former Disney Consumer Products segment, where he drove the technology-led transformation of the Company’s consumer products, retail and publishing operations. Prior to that, he served as President of Distribution for The Walt Disney Studios and was responsible for overseeing the Studios’ overall content distribution strategy across multiple platforms including theatrical exhibition, home entertainment, pay TV, digital entertainment and new media.
Commentary
There are two aspects of this news: Bob Iger abruptly stepping down as Walt Disney Company’s CEO and Bob Chapek as his successor. We’ll start with the Bob Iger aspect of the news. Suffice to say, it strikes us as odd. There’s almost certainly more to this story than what has been revealed.
After extending his tenure on a couple of occasions, we anticipated that Bob Iger would groom a replacement and slowly reveal that individual, perhaps with carefully-placed “rumors” in trade publications. Disney would set the stage for that person as Iger’s clear successor even before an official announcement. With that, we expected that there’d be an announcement that said successor would take the helm at a future date a year or so down the road upon Iger’s exit, with a smooth transition coming first.
While the press release uses the word transition (and the same word was just used on the investor call a lot), stepping down immediately certainly doesn’t suggest that this is going to be a smooth and seamless process. Nor does elevating Bob Chapek without naming a new Chairman of Disney Parks, Experiences and Products.
It’s possible that Bob Iger’s new role as Executive Chairman will actually serve to ensure a smooth transition. However, that could just as easily be an honorary or superficial title to make it appear that this change isn’t abrupt. Disney has a history of creating and filling meaningless positions for high-profile executives who are leaving to “spend more time with family.”
As for the motivation, your speculation is as good as ours. There are all of the obvious assumptions when this type of thing happens, but we’re not going to engage in rumor mongering. We do question whether there’s more to this story, and what subsequent developments will occur. Quite simply, the explanation that the time was right does not pass the smell test. This looks and feels very sudden and odd.
As for our thoughts on Bob Chapek as CEO of the Walt Disney Company, we’ll share similar sentiment to what we did in the commentary to our recent Walt Disney World Investing Millions of Dollars on Cast Morale article.
We don’t normally offer commentary about executive leadership at the Walt Disney Company because it’s tough to do so from the outside looking in. Quite simply, fans see what we want to see. We view things in reductionist terms, and can be manipulated by agendas both internal and external to the company. Consequently, it’s easy to paint leadership in the familiar terms of Disney fairytales.
There’s always a villain—the one blamed for the gratuitous injection of IP in attractions. There’s also usually an underdog hero—the one who “gets” Disney and would save the parks and restore Epcot’s original vision if they just had a little more power. There’s perhaps a kernel of truth to some of this, but just as much is attributable to media savvy (or lack thereof) and how executives present themselves and mold their own public image.
With all of that said, our outsider’s perspective on Bob Chapek is not exactly glowing. As is the case with many Disney theme park fans, we’re skeptical of his consumer products background. There are plenty of anecdotes about him that suggest he doesn’t “get” theme parks, and his own words in publicly-available interviews reinforce how he views the parks and Disney brand as a whole.
However, we’ve never even met Bob Chapek and obviously have no firsthand experience of his leadership. Our view is largely uninformed and biased towards parks. Obviously, his new role as CEO encompasses far more than just theme parks, and perhaps he’s well-suited for such a position.
There’s also the matter of what this means for Walt Disney World, Disneyland, and the international theme parks. Per the Walt Disney Company, the role vacated by Bob Chapek will be filled at a later date. It’s a pretty significant position to simply leave vacant, and we’d expect it to be filled sooner rather than later.
In the past, when the Parks & Resorts division has received a new leader, they’ve acted quickly to make their mark. Perhaps most notably, Tom Staggs changed the scope of New Fantasyland in Magic Kingdom shortly after his arrival, transforming plans for a slew of meet & greets into Seven Dwarfs Mine Train. Other examples of such changes abound as leaders aim to leave their fingerprints on the parks and have a say in future developments.
This isn’t necessarily cause for concern–we wouldn’t expect any plans to be put on hold, especially anything that’s already in-progress construction. However, the scope and scale of previously-announced projects could change, especially those where little-to-no physical work has begun. This could also impact concepts that are in various stages of development but have not yet been greenlit. (Basically, we’re talking about Walt Disney World and Disneyland projects on the horizon for 2022 or beyond. Little if anything before then should be impacted.) We’ll continue monitoring this news, and will share whatever else develops as this transition takes shape…
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Your Thoughts
What do you think of Bob Iger stepping down as the Walt Disney Company’s CEO? Do you think the time is right, or agree that this seems very abrupt and odd? Thoughts on Bob Chapek being named new CEO? Who would you like to see be the next Chairman of Parks, Resorts & Experiences? Any questions? We love hearing from readers, so please share any other thoughts or questions you have in the comments below!
We were there in late January and the crowds were insane – every day! I agree with other comments that is way too expensive for 3 fast passes a day. That’s about all we were able to do because the lines were so long and the crowds were just miserable! We rode the Skyliner to Caribbean Beach to eat lunch because HS was so crowded! Not sure when we’ll be back – and we’re DVC members! The admission tickets are so expensive!
Had the worst vacation of my life in Disney World last October. We planned a year ahead and had everything all set with fast passes and up to date info on how to tour Star Wars Galaxy’s Edge. The crowds were horrible and people were so unhappy and tired. Fast passes did not work half of the time and the food was expensive and horrible in Galaxy’s Edge. The Cantina line was for ever even when we used the app ahead of time. We were shoved like sardines into a booth and told if we moved we would be asked to leave. I will never again spend money on Disney unless something changes in a big way and they treat us more like humans instead of a way to make a buck.
Not sure what universe you’re in, but we had a great trip in October! EEMH at DHS was awesome, stole some coaxium 10 or 12 times, hit Oga’s 3 times, good food, great cast interactions, everything. We did all the big stuff in all four parks.
I went this past Jan. early Feb. The crowds were insane. I do have to say I was extremely dissolutioned. Literally, I had one ride per park per day with my FP+, including a PH pass. So after my one ride, what else is there to do but walk around and find a line that isn’t under 45 min. Even extra morning hours were rididiculous. Magic Kingdom early hours only included fantasy land and tomorrow land. 7 dwarfs was already 90 min. by the time I got there. I guess if you want to swim and eat, go on a couple of rides or wait in long lines, this is the trip for you. The insane system for ROTR, is crazy regarding planning and then you don’t know when you will be called, and it breaks down all the time. And the cost! Is it worth it anymore? I think my future dollars will be looking elsewhere.
We also went mid February and crowds were also ridiculous. We were able to ride our 3 Fast pass rides and that about it. It was a lot of money to ride 3 rides per day.
Was there last week, Feb 15-19. Insane crowds. Great weather at least. Did RotR twice, SR once, Slinky once, Safari twice, Everest once. That’s about it. But getting on RotR twice was our goal for the trip.
I have been going to Disney since 1972.
Have not gone the last couple of years. The prices are outrageous if you are Canadian since our dollar is so much lower than the American.
The free dining plan helped but it seems it is almost impossible to get it anymore.
It used to be easy to get it but it seems fewer and fewer hotels come with it and almost impossible to get through to get it.
I will never pay the outrageous prices again and I think Walt would be turning in his grave to see what a money grab Disney has turned into.
Not what I believe he had in mind.
I started going to Disneyland when I was around 12 yrs old. We went about every other year(Dad,Mom and 3-siblings. That was our most favorite vacation. But the greedy Admin for Disney has gone up go freakin much a family of 4 needs to save for a WHOLE YEAR to be able to afford to go to Disneyland. That is SOOOOO SAD, that is not what Mr Walt Disney wanted. He wanted it to be a family place to have fun, now some people can’t afford to go. I can’t even afford to take my Granddaughter every other year because prices keep going up and up and up. QUIT RAISING PRICES. It’s expensive enough to travel, buy disney tickets, motel, food, and of course buy suveiners. STOP RAISING PRICES.
Tom,
We had the pleasure of meeting Mr. Chapek in July 2016 at the new Star Wars dessert party/fireworks. He was there to see the new Star Wars show & unfortunately to follow up with that horrific accident that happened at the Grand Floridian. During the dessert party, he made his way around speaking to all the employees & guests. He was asking everyone their opinions about how we liked everything. He then accompanied all the dessert party guests to a roped off area to watch the show. There , he was kind enough to pose for pictures with our children . He talked to our family wondering what we liked/disliked about the show & then he talked a while longer with my children about their college plans. I am sure he will continue to do a fantastic job at Disney. Best of luck to him in his new role. Congratulations Mr. Chapek!!
Is that you bob?
Tom, I want to applaud your attempt to stay neutral and to give your readers an unbiased report of just the facts. Thank you very much.
I just have a couple of other things to say. I agree with some of the other previous commentators that Disney needs to slow down taking all of the money that they can get from it’s fans and customers. I also hope that it will stop being “politically correct” to ban certain products from the past which are supposedly not sensitive to the plight of African Americans like “Song of the South” and the Black Crows of Dumbo. I am sure that there are other things that need to be included, but suffice to say, what is historical is good for me and should be re-issued as they were originally created.
I was shocked when this news came through on my phone yesterday. I expected a “Disney names Chapek successor and will begin training under Iger” or, SOMETHING. Not “Disney names new CEO” I liked Iger, from what we were shown. But I also like many new things coming to the theme parks. So I hope things keep trending in that direction. Here’s to hoping we don’t enter another “Disney dark ages”
Changes are coming for sure. I would love to see a change in line system at Disney World, as that is the worst part of Disney parks. While Fastpasses are great for the 3 rides you get with them, they make every other line a nightmare because the wait is 2-3 times as long as you stand there waiting watching thousands of people cut you in line because they have Fastpasses. Also it is very hard to predict the time when you will need the Fastpasses so you end up backtracking all through the park to use your Fastpasses when your window opens instead of when you are near the ride ready to use them. the Dumbo ride gives you a pager where you can play until it is your turn to ride. Building on this, I would love to see us be able to “get in line” by selecting our next ride on our phones, then have our wristbands vibrate when it is our turn to ride. Then we can be eating, shopping, sitting, exploring, even spending money…instead of standing bored in a line. And I mean be able to do this for every ride, not just our top three. Speaking of which I do not like the tier system in other parks where you can’t even pick your top three so you only get 1 good Fastpass. Also I really dislike the idea that the wealthy have way more of a shot at Fastpasses, those who stay on Disney property for many days have a huge advantage in gaining Fastpasses (not to mention those who join that expensive club or get VIP tour guides) and I don’t think that is how Walt Disney would have wanted it at all. Heaven forbid having to pay for Fastpasses which also favors the wealthy. Just my 2 cents on how I hope things will change with new CEO.
We like to call it Fastpass-Minus now because of that!
The old fast pass was great. No one could get them ahead of time. Everyone arrived at the park on equal footing-with no fast passes. You went to the ride you wanted to get a fast pass for and got it at a kiosk. When you used your fast pass, you could get another one. So much more fair. We boycotted for years when they changed the system. But I don’t think they missed us .
I think he is getting a head start on 2024 Presidential. Can’t spend a second on that and be CEO. If Sanders locks up the Dem, Trump wins and Bob will have had 4 years to pounce into the cycle as the clear front runner when the cycle fires up in 2023. He had the biz cred Bloomberg AND is likeable, Something Bloomberg is not
Haha, if people think Donnie is bad, Mikey is a thousand times worse. We don’t need a Soviet-style goon in the White House. Mikey is no Mickey.
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Stop monetizing guests or lose it all. Disney–too big to fail, say you?
Not. Even. Close.
I’ll wait and see. As for me and my family? We are done with Disney unless there is a complete turn around in how guests are treated.
I’m with you. I’ve been a long term Disney fan. My first visit was 49 years ago. I’ve indoctrinated my children. But in recent years I’ve become disillusioned and disappointed with Disney’s increasing greed. This is not how it used to be. They are succeeding in destroying the ingrained loyalty that Walt so masterfully created. I like the recent additions but the Magic is no longer there when you have to pay $99 for dessert, spend $500 for a family of 4 to spend a few hours extra in the park or ride a few rides in a day because of crowds. I’ll always love Disney but it will no longer be my go-to vacation choice.
There’s no reason to spend $99 on dessert or $500 to stay in the parks a little longer. Those things never existed before, so why would you need them now? They could double ticket prices tomorrow and it wouldn’t cause a blip in attendance. I’d be happy to pay if crowds were back to 90s levels but that’s never gonna happen.