Iger vs. Chapek: Disney CEO’s Had Tense Falling Out

Bob Chapek, the current CEO of the Walt Disney Company, has reportedly had a falling out with his predecessor Bob Iger. Chapek, who took over from Iger in February 2020, has had a difficult time in the position as only a month after assuming his new responsibilities, the COVID-19 pandemic curtailed most of Disney’s operations and led to losses of almost $1.4 billion. Alongside the issues brought on by the pandemic, Chapek’s reign as CEO has also seen a public dispute over salary negotiations with Scarlett Johannsson and a staff walkout over the poor response from company leadership to Florida’s ‘Don’t Say Gay’ bill, both of which harmed the company’s public image.

It can’t have been easy for Chapek to assume the position, as even without the unforeseen circumstances of the pandemic, he would’ve been filling some very big shoes. Iger’s tenure as CEO was immensely successful and saw the purchase of Pixar, Lucasfilm, Marvel and 20th Century Fox, managing to expand Disney’s intellectual properties whilst also resulting in massive box office returns. He was also incredibly popular, taking careful steps to maintain Disney’s public image and quickly capitalizing on the possibilities of home streaming services when he oversaw the creation of Disney+.

It seems however, that perhaps Iger’s shadow was too large for Chapek to escape, as the two men have reportedly had an unresolved falling out. According to CNBC, a columnist for the New York Times published an email wherein Iger expressed his intention to stay and help Chapek with his duties after the pandemic began to affect the business. This apparently enraged Chapek, who had not expressed any desire for help and saw this as another opportunity for Iger to postpone his retirement, which had happened three times already. The men have not since resolved this issue and apparently didn’t speak with one another at Iger’s going away party, where they sat at opposite tables.

The fallout from this spat has meant that key decisions taken by Chapek have had little to no input from Iger, often with disastrous results. The public disagreement between Disney and Scarlett Johansson over its day-and-date release apparently mortified Iger, who had been a key figure in establishing great relationships with the company’s biggest stars. Similarly, while Iger took a public stance against the ‘Don’t Say Gay Bill’, Chapek was forced to apologize to employees for not opposing the legislation, a move which has not managed to stem the furious tides and Disney employees have since staged a historical first walkout in protest. Had Iger and Chapek worked more closely on these issues, then perhaps they might have been able to avoid some of the biggest criticism the company has faced in years.

Whether or not Chapek and Iger will repair their relationship remains to be seen, but it’s unlikely. Alongside the public disputes, Chapek has also restructured Disney internally, taking Profit and Loss powers away from experienced streaming heads and putting it in the hands of a single executive. Whether or not this will work out is still questionable, but it can be assumed that it was done without any input from Iger, which seems a mistake. Disney wouldn’t be in the dominant position it’s in now without Iger’s stewardship and to disregard all of that expertise over a single email could prove to be Chapek’s downfall.

Source: CNBC