That article should be mandatory reading for anyone in this thread. Wow.
And boy is CNBC promoting it. It even has it's own little ad at the bottom of the screen during most of the day.
https://www.cnbc.com/2023/09/06/disney-succession-mess-iger-chapek.html
My highlights:
“Since Chapek’s background at Disney had been in parks, consumer products and distribution,
he knew little about the inner workings of ABC, ESPN or the movie studio. He’d been given a large binder of background material by the investor relations team, but now he had to be ready to answer questions on any topic, which could range from Disney’s stance on the environment to the future of ABC News.”
Chapek didn't do his homework and completely failed his first assignment. And Iger threw him to the wolves right off the bat.
“Just days later, the two men had their first strategic disagreement.
Chapek wanted to furlough about 100,000 parks employees after Disney World closed its gates. Iger advocated waiting for the government’s Covid-19 relief act to kick in so the furloughed employees would have some government money to hold them over.”
Talk about the Disney difference.
“Chapek also complained to the Disney board about the story, demanding to be given a seat immediately; Disney had promised him one but had not set a date.
Chapek did not want Iger and the board talking about him or his job status while he wasn’t there, according to people familiar with his thinking.”
“Privately, Arnold counseled Chapek to be patient, something she’d continue to do for months to come in
a series of coaching sessions. Let Iger run creative, she said. In 18 months, Chapek would have control of everything. Until then, don’t engage in turf wars.”
Always a good sign when the Board Chair has to coach the incoming CEO.
“Studio heads and content division leaders would still choose which projects to greenlight,
but someone else would have the authority to bring needle-moving content to Disney+ or Hulu.”
That worked out.
“Inside Disney, many executives saw the reorganization as a way for Chapek to shift the power balance away from Iger’s base — TV and movie executives.
Chapek had long felt that Disney’s culture, under both Iger and Eisner, treated non-creative executives like him as second-class citizens, according to people familiar with his thinking.”
Creatives ARE the company, not bean counters.
“Around this time, in late 2020 and into 2021, Disney executives throughout the company started to feel increasingly awkward about the Iger-Chapek relationship.
McCarthy warned Chapek that Iger’s criticism was reaching an increasingly wide audience.”
McCarthy a master at playing both sides.
“
If Chapek wanted to be CEO, he should be CEO, Iger reasoned. To Iger, this was a clear business matter — a contract dispute — and not a “creative endeavor,” according to people familiar with his thinking.”
Iger let him wade into the shark waters with Scarlett Johansson, knowing dang well how it would play out.
“He combined government relations with media communications, naming former BP corporate affairs boss and onetime Defense Department press secretary Geoff Morrell as chief of corporate affairs.
That decision effectively forced out Mucha, as well as general counsel Alan Braverman, whom Chapek viewed as a diehard Iger loyalist.”
Quite possibly his biggest strategic blunder which led to losing Reedy Creek and getting into a war with DeSantis.
“To combat the outflow of institutional knowledge,
Chapek worked overtime to make sure he retained McCarthy, the CFO. McCarthy, who had joined Disney in 2000 and who was in her late 60s, was a
master of internal politics and had close ties to the board, according to colleagues.”
“In an executive session alone with the board,
Chapek argued that if anything was amiss, it was McCarthy’s poor financial management. After all, the division CFOs reported to her.”
He should have known better to go up against her.
“
McCarthy told colleagues DMED was supplying her with unreliable information, constantly changing its forecast, according to people familiar with the matter.”
This will come up shareholder lawsuits.
“
Chapek attended only a few minutes of the first strategy session. He spent most of his time at the retreat participating in activities that would showcase his personable side to employees. “
“
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. “
Ouch.
“While Iger has relied on Mayer and Staggs for
strategy advice in recent months,
he did not seek their input as a precursor for succession, according to people familiar with his thinking. “
This is going to be a mistake. Fool me once, shame on you, fool me twice, shame on me.
“
Just as it has since 2005, the magical world of Disney once again revolves around Iger. Everyone else is on his ride.
The ride of a lifetime.”
