Bob Iger Steps Down as CEO, Chapek to Succeed Iger as CEO

[TraderSamWDW]

I have read all of the post and the one thing I do not understand "why do people keep going back if it is so bad?"
If people are so unhappy with the way the parks and resorts are and have been run why keep spending hard earned money to go back?
There was a thread called something like "Is Disney no longer affordable to the middle class" I know it is expensive to visit Disney but have thing gotten that bad it is not worth the money?

For the same reasons many American's, myself included, complain about things that are wrong with America(or we see as being wrong), but don't go moving to another country. Excellence is a never ending pursuit. People complaining does not mean things are so bad. It is just discontent.

Which is, by the way, the first necessity to progress. I think I heard that in EPCOT somewhere

Companies are in business to make as much money as they can. If it is a public company their responsibility is to the stock holders. Their are two way a company can make more profit "increase sales and or cut expenses" It is that simple.

Very true. Increasing sales requires a vision. Cutting expenses requires a numbers analysis. Its pretty clear what type of person is at the helm now.

 

[SaintsManiac]

https://www.facebook.com/DisneyPete/posts/3595826963823623

 

[mom2rtk]

https://www.facebook.com/DisneyPete/posts/3595826963823623

Does this mean it was all Pete's fault?

Looking forward to the podcast.

 

[SaintsManiac]

Does this mean it was all Pete's fault?

Looking forward to the podcast.

I just ran to check my calendar to make sure I can watch it live.

Edit not live, but as soon as it releases.

 

[Jeff Laughlin]

Now let's ask the most important question, does this change help or hurt Figment's role in the next refurb of Imagination?

 

[Hjs33]

So my theory on the sudden early change in CEO is based on the Coronavirus. Iger said he told the board late last year that he wanted to step down and the board started looking for a replacement. I think they had done their search and decided that Chapek would be the next CEO.

Now the coronavirus comes along and that is just bad news for the division that Chapek runs.... potential park closings, cruise ship bookings canceling, and people generally just not going out and buying merchandise. Chapek was probably going to have to make some hard and unpopular decisions in the near future as head of that division. Even if he makes the right decisions, he would still probably end up looking bad. So to protect their next heir apparent, they promoted him to CEO. Now someone else can make those hard and unpopular decisions and more importantly they will get blamed for any missteps.

I think Chapek probably would have been promoted later this year at some point, but the timeline was probably moved up and they made it effective immediately because of the coronavirus.

 

[Disneychick75]

Those of us old enough to remember the Golden Age of Walt Disney World under Eisner are cheering because guests under Eisner were treated like we mattered. Of course making money was #1 but the guests did not feel they were shunted aside in favor of the green.

"If you don't like it, don't go back." For 20+ years, we were going to WDW multiple times a year. In 2017, we had enough. Have been back 1 time and are planning a family trip so that our 2 youngest grandchildren can experience WDW. Then, if things have not improved, we are done.

 

[OKW Lover]

So my theory on the sudden early change in CEO is based on the Coronavirus. Iger said he told the board late last year that he wanted to step down and the board started looking for a replacement.

If the board waited for him to tell them he wanted to step down, they were severely derelict in their duty. The corporation should have a succession plan in place well before a CEO is ready to depart.

 

[Mattimation]

So my theory on the sudden early change in CEO is based on the Coronavirus. Iger said he told the board late last year that he wanted to step down and the board started looking for a replacement. I think they had done their search and decided that Chapek would be the next CEO.

Now the coronavirus comes along and that is just bad news for the division that Chapek runs.... potential park closings, cruise ship bookings canceling, and people generally just not going out and buying merchandise. Chapek was probably going to have to make some hard and unpopular decisions in the near future as head of that division. Even if he makes the right decisions, he would still probably end up looking bad. So to protect their next heir apparent, they promoted him to CEO. Now someone else can make those hard and unpopular decisions and more importantly they will get blamed for any missteps.

I think Chapek probably would have been promoted later this year at some point, but the timeline was probably moved up and they made it effective immediately because of the coronavirus.

I feel like that would be a massive overreaction to a still-developing situation, and ultimately not that helpful to Chapek. To me, the timing almost feels like throwing Chapek under the bus. Any big decision like closing down the US Parks would certainly involve the CEO, especially now that Parks/Experiences/Products don’t have a specific leader announced to replace Chapek yet. The decision to close US parks will certainly blow back on whoever’s in charge of the whole company, but if Coronavirus is to blame for Iger’s leave, I would think it’s more the economic downturn the virus is causing than potential moves being made to prevent the virus. People have speculated about a recession for years, and now that there appears to be a straw breaking the camels back, I would believe Iger decided to get out ASAP so his legacy isn’t tarnished by trying to lead a huge company through a national financial crisis.

 

[Alicefan]

DIsney didn't purchase all of that IP for Disney World. WDW makes them a lot of money, but it's not the primary driver for all of their business decisions. They purchased FOX for their film and TV catalog, primarily for the initial build-out of Disney+ and to control Hulu. That's what's going to make them big money in the future.

I feel like a lot of people on this board put a lot more importance for Disney's operations on WDW than is actually justified.

I'm sure you're right, but you have to admit, it surely crossed their minds of what ALL they could do with that IP beyond Hulu and Disney+. I actually picture them maniacally laughing and twiddling their moustaches after those purchases. lol Of course the parks would benefit....as we've already seen. They jumped on Avatar like white on rice after Harry Potter was so successful. Trust me...it's on the radar, maybe not the ONLY radar, but they do care about being top dog in the theme park world.

 

[Alicefan]

Which is a good thing for us consumers.

IF we can all still afford the luxury of going when it's all said and done. I know the consumer isn't benefitting when it comes to having to pay for all of these purchases. I haven't been since December of 2018 and that's the longest I've gone in 30 years in between visits. I also have no intention of going again until all of the construction is done, and that's just to see what they do. I'll never be able to do multiple trips like I used to. I started going on cruises and flying to Europe for less money and that's probably what I'll continue to do. I can do 3 cruises for the price of one short Disney trip.

 

[MissGina5]

I will say that Pete's insight on DisUnplugged made me feel a little better. Or maybe I am just looking for positives lol.

 

[Alynw]

Wall St disagrees. Companies of Disney's magnitude normally announce transitions like this months ahead of time.

Yes they do, that is normal big Corp procedure. My post was about when the decision of releasing Iger was made. Disney board did not wake up one day and decide to make a change and then go public, the decision was made months in advance before the announcement. You post the similar comment so not sure what ur getn at.

 

[Brianstl]

Yes they do, that is normal big Corp procedure. My post was about when the decision of releasing Iger was made. Disney board did not wake up one day and decide to make a change and then go public, the decision was made months in advance before the announcement. You post the similar comment so not sure what ur getn at.

No way that day was planned ahead of time. Chapek would have been much better prepared by Disney's PR department if that was the case. Instead it appeared that Chapek was still coming to terms with the news himself.

 

[OSUZorba]

So my theory on the sudden early change in CEO is based on the Coronavirus. Iger said he told the board late last year that he wanted to step down and the board started looking for a replacement. I think they had done their search and decided that Chapek would be the next CEO.

Now the coronavirus comes along and that is just bad news for the division that Chapek runs.... potential park closings, cruise ship bookings canceling, and people generally just not going out and buying merchandise. Chapek was probably going to have to make some hard and unpopular decisions in the near future as head of that division. Even if he makes the right decisions, he would still probably end up looking bad. So to protect their next heir apparent, they promoted him to CEO. Now someone else can make those hard and unpopular decisions and more importantly they will get blamed for any missteps.

I think Chapek probably would have been promoted later this year at some point, but the timeline was probably moved up and they made it effective immediately because of the coronavirus.

I propose a slightly different twist on this. Chapek could have been brought in as a crisis CEO. Someone that will make the hard and unpopular decisions to keep the company going through a crisis and then he'll get replaced on the other side. A pure numbers guy makes sense in that situation, not as much in the good times.

 

[Q-man]

Yes they do, that is normal big Corp procedure. My post was about when the decision of releasing Iger was made. Disney board did not wake up one day and decide to make a change and then go public, the decision was made months in advance before the announcement. You post the similar comment so not sure what ur getn at.

Usually corporations of Disney's magnitude actually tell Wall St months in advance, not make the decision months in advance and then blindside Wall St with it.

 

[RivShore]

Not sure if this was posted before but it's a good article on the transition...

https://www.forbes.com/sites/dawnch...hrones---or-is-it-just-starting/#3e5bd7d91725

 

[OKW Lover]

I propose a slightly different twist on this. Chapek could have been brought in as a crisis CEO.

Well, if he had been brought in now I might agree. But since he was brought in before the current health crisis I don't think this was the reasoning.

 

[J-BOY]

Well, if he had been brought in now I might agree. But since he was brought in before the current health crisis I don't think this was the reasoning.

Bob Iger only stepped down 2 weeks ago. It's not like it wasn't a health crisis back then, and professionals were predicting it would worsen for weeks before anyways. I'm not saying he was promoted as the "crisis CEO" but I don't think that reasoning holds up.

 

[OSUZorba]

Well, if he had been brought in now I might agree. But since he was brought in before the current health crisis I don't think this was the reasoning.

It was before the public started to panic, but it wasn't before the writing was on the wall.

Disney already had two parks closed. Theaters in China were shut down. The Wall Street correction had started. And the Diamond Princess was a massive red flag for the travel industry. Pretty sure it was after the outbreaks in Italy, Iran and South Korea were known.

I'm not saying he was definitely brought in as a crisis CEO, but I think there timing does work out.