Disney selected to rehire Bob Iger as chief executive after receiving internal complaints from senior leadership that Bob Chapek was not fit for the job, in line with people acquainted with the matter.
The manager change got here together quickly, blindsiding Chapek and his closest allies. Disney’s board reached out to Iger on Friday, without some other serious candidates in mind to interchange Chapek as CEO, CNBC’s David Faber reported Monday, citing sources.
The board’s outreach to Iger and discussion to interchange Chapek got here after the board married internal complaints about Chapek’s leadership with concerns following Disney’s most up-to-date quarterly earnings report, said the people, who asked to not be named since the discussions were private. One in all the executives to precise a insecurity in Chapek was Christine McCarthy, Disney’s chief financial officer, two of the people said.
Christine M. McCarthy, Senior Executive Vice President and Chief Financial Officer The Walt Disney Company.
Source: The Walt Disney Company
McCarthy was Iger’s CFO before he departed as CEO in 2020, holding the role since 2015. She has a longtime relationship with the board given her longevity within the position, the people said.
A Disney spokesperson declined to comment. Chapek didn’t reply to a request for comment.
On Sunday, Disney said it might replace Chapek with Iger as chief executive, effective immediately. Chapek had come under fire for his management of Disney in the previous couple of years. Chapek was notified on Sunday night, Faber reported.
Chapek and his inner circle were caught off guard by the news, one in all the people said. The status of Chapek’s right-hand man, Kareem Daniel, is murky and depending on the direction Iger desires to take at the corporate, two of the people said. Daniel leads Disney Media and Entertainment, a division created through Chapek’s reorganization of the corporate. Iger has never been a fan of the reorganization, which has caused internal consternation for nearly two years.
Chapek complaints
Iger has consistently heard complaints from his ex-colleagues all year long about Chapek’s leadership style and decision to drag away budgetary power from Disney’s creative executives, in line with people acquainted with the matter. Several specifically noted Chapek’s plan to maneuver 2,000 Disney employees from California to Florida, which was then delayed, showed a level of callousness toward employees’ lives that did not jive with Disney’s family-friendly culture.
While some internal CEO candidates were identified who might have the opportunity to take the job over time, the board didn’t wish to put someone latest in that position given all various pressures on the corporate, Faber reported.
Disney reported fiscal fourth-quarter earnings earlier this month, disappointing on profit and certain key revenue segments. The corporate had also warned that its strong streaming numbers would likely taper off in the long run. Three days later, Chapek told executives that Disney would cut costs through hiring freezes, layoffs and other measures. The memo about cost-cutting led to some internal pushback against Chapek, one in all the people said.
The corporate’s shares rose Monday following the news of Chapek’s substitute.
— CNBC’s David Faber contributed to this text.
