Disney extends CEO Bob Iger to 2018

[disneynutz]

It's a shame that profit trumps keeping up with the basics. Clean parks, replacing burned out light bulbs, clean restrooms, clean and maintained resort rooms, CM training.

Lately I feel like the focus is on processing the masses, not the individual experience.

Bill

 

[Ellwood970]

It's a shame that profit trumps keeping up with the basics. Clean parks, replacing burned out light bulbs, clean restrooms, clean and maintained resort rooms, CM training. Lately I feel like the focus is on processing the masses, not the individual experience. Bill

when did we hear this before!! Eisner 2004.

 

[lockedoutlogic]

when did we hear this before!! Eisner 2004.

The thought had occurred...

Some historical ironies though...

Eisner was more crazy at that point than Iger by far. Eisner became egomaniacal, moody, and cheap - as in he didnt want to pay for talent...and had no desire to hear opinions from those with experience that would be paid well for their opinions.

But the big difference here is that there is no Roy. Having a guy who looked like Walt Disney, was the largest individual stock holder, and who had a save on his record was an incredibly effective balance to power over the preceding 20 years.

Disney could use some form of that... As one of Roy's biggest complaints was that Eisner controlled the board and they were mouthpieces.

This board... Is as "cheap suit" as it gets. I mean...proctor and gamble? Estée Lauder?
That's as stale as it gets.
I mean...one guy was in charge of KFC/pizza hut/ Taco Bell...then was in charge of the sears/Kmart merger (bankruptcy guaranteed)... And now is head of potbelly sandwiches.... Which I kid you not opened and closed within 3 months down the street from me in the middle of Yuppiesuburbia, USA.
Talk about a "history of excellence". They'll probably put him in charge of Star Wars land at studios.

Well, Iger seems more balanced from a personality standpoint from what we've seen.
But I can't help to think of the wall of "leadership" that they had up at every wdw unit back around 2000...
Three or four people on it at the time seemed like the prototypical do nothing cheap suits...

Al Weiss, Paul Pressler, and Bob Iger.
Oh well...I guess it could have just been bad camera work (to be fair, Iger's picture was REALLY bad senior picture-esque camera work)

 

[Bob Roberts]

Everybody is praising Iger like he is some sort of genius due to the performance of Disney Stock as of late. Its only a matter of being in the right place at the right time. This economy we live in right now is as phony as it gets. Its all based on debt, low interest rates, and inflation. Retirees who get nothing out of their savings right now (due to low interest rates) have no choice but to buy stocks to get any sort of return on their savings. Combine this with the FED pumping in 10's of billions of QE to the banks every month for them to purchase stocks and what do you get? That's right overly inflated stock asset prices. Voila Iger is the man!! It has nothing to do with acquiring Star Wars etc.

If I was Iger I would be wanting to get out as soon as possible. Record stock prices that are not being created by the free market but artificially by the government builds a huge bubble that will eventually burst.

 

[lockedoutlogic]

Everybody is praising Iger like he is some sort of genius due to the performance of Disney Stock as of late. Its only a matter of being in the right place at the right time. This economy we live in right now is as phony as it gets. Its all based on debt, low interest rates, and inflation. Retirees who get nothing out of their savings right now (due to low interest rates) have no choice but to buy stocks to get any sort of return on their savings. Combine this with the FED pumping in 10's of billions of QE to the banks every month for them to purchase stocks and what do you get? That's right overly inflated stock prices. Voila Iger is the man!!

If I was Iger I would be wanting to get out as soon as possible. Record stock prices that are not being created by the free market but artificially by the government builds a huge bubble that will eventually burst.

I can't argue with any of that...

And I agree that Iger is taking a big risk if he hangs around...a golden parachute only works if you pull the cord.

The world economy is all smoke and mirrors dictated by talk...not numbers. It's not a matter of if the next crash will come..:but when and from what angle.

 

[Bob Roberts]

I can't argue with any of that...

And I agree that Iger is taking a big risk if he hangs around...a golden parachute only works if you pull the cord.

The world economy is all smoke and mirrors dictated by talk...not numbers. It's not a matter of if the next crash will come..:but when and from what angle.

The bottom line is the USA economy is addicted to cheap money and low interest rates. We can't raise interest rates and eliminate QE or all the bubbles will burst. Heck the government would be using all of our taxes just to pay interest on the debt if rates would rise. So what do they do? Just keep on printing money, keep rates low, and everything will be okay. Whoops they just forgot about one teeny tiny little thing. INFLATION.

 

[Brer Chump]

Since Iger took over DIS stock is up +215%. Compare that with the S&P 500 which is + 65% and the Dow Jones Industrials at + 58%.

Can't argue the stock performance. Happy stockholders = Happy Board of Directors = Safe CEO.

 

[lockedoutlogic]

Since Iger took over DIS stock is up +215%. Compare that with the S&P 500 which is + 65% and the Dow Jones Industrials at + 58%.

Can't argue the stock performance. Happy stockholders = Happy Board of Directors = Safe CEO.

That's great...

Buy it does not indicate a positive outlook for parks (necessarily)...and that is where the "majority" of complaints around here stem from...

At least from my seat

 

[lockedoutlogic]

Since Iger took over DIS stock is up +215%. Compare that with the S&P 500 which is + 65% and the Dow Jones Industrials at + 58%.

Can't argue the stock performance. Happy stockholders = Happy Board of Directors = Safe CEO.

That's great...

But it does not indicate a positive outlook for parks (necessarily)...and that is where the "majority" of complaints around here stem from...

At least from my seat

 

[rteetz]

That's great... But it does not indicate a positive outlook for parks (necessarily)...and that is where the "majority" of complaints around here stem from... At least from my seat

Exactly under Iger parks and resorts investments have decreased significantly compared to other CEOs

 

[Bob Roberts]

Since Iger took over DIS stock is up +215%. Fart,Compare that with the S&P 500 which is + 65% Fart, and the Dow Jones Industrials at + 58%.

Lets take a look at the price of Disney Stock just before QE 1 in December 2008. Ouch $23 dollars a share. Not so hot, that is actually lower then when Eisner left. Hold on here, now the government and the FED are pumping in Billions every month to the banks to buy stocks. Wow look, by 2014 its now $87 dollars, its a miracle. My point is this, stock has not gone up due to its performance in the free market. Its been brought up artificially by the government through Quantitative Easing, low interest rates, and inflation. Its just a way to make the economy look stronger then what it is.
I would love to see how Disney stock would perform if interest rates went up and QE was cut.

 

[mvk]

Ha ha ha ha, your comparing Disney Stock to the Dow and S&P.

Now which stock do you think is more affordable for the average retiree who is getting nothing out of their savings due to artificially low interest rates?

Disney 2005 = $28.44 Disney 2014 = $87.39

DOW 2005 = $10,255.47 DOW 2014 = $16,566.30

S&P 2005 = $1,189.21 S&P 2014 = $1,933.67

Berkshire 2005 = $87,500.35 Berkshire 2014 = $208,325.27

Hmmmmmmmmmmm Disney is like a penny stock compared to these. So of course the percentages for Disney are way higher. Do you notice the huge upward trend in all of these stocks?

Take a look at Concur Technologies they were a penny stock trading at .31 cents. Now they are trading at $109 dollars a share. Do the math, they blow Disney away. Reason being its easier to have higher percentages when you start so low.

Now lets take a look at the price of Disney Stock just before QE 1 in December 2008. Ouch $23 dollars a share. Not so hot, that is actually lower then when Eisner left. Hold on here, now the government and the FED are pumping in Billions every month to the banks to buy stocks. Wow look, by 2014 its now $87 dollars, its a miracle. My point is this, stock has not gone up due to its performance in the free market. Its been brought up artificially by the government through Quantitative Easing, low interest rates, and inflation. Its just a way to make the economy look stronger then what it is.
I would love to see how Disney stock would perform if interest rates went up and QE was cut.

I don't think you know how percentages work, and I'm not sure you understand what the S&P 500 and the Dow are either.

If interest rates went up, Disney would likely still outperform the Dow and S&P500. Maybe it drops, but not to the same percentage level the Dow would. The company is taking in record-setting revenue from many divisions under Iger, that is what is driving the performance of the stock, as compared to the benchmarks and market indicators.

With what the company is doing over the last 6-8 years, the stock would be up (in terms of performace against benchmarks) in any financial climate.

 

[mvk]

Exactly under Iger parks and resorts investments have decreased significantly compared to other CEOs

Source? Because this article from June 2012 states otherwise -

http://news.yahoo.com/disney-investment-parks-resorts-tops-10-5b-during-065204346.html

The new touches are part of a wave of investment by Disney in parks and resorts that is expected to top $3 billion in the fiscal year through September, the highest in company history.

Among the recent projects:

— the Aulani resort in Hawaii opened in August 2011;

— an expansion of Hong Kong Disneyland opened in November 2011;

— the Disney Fantasy cruise ship launched in March;

— the first phase of an expansion of Fantasyland at the Magic Kingdom in Orlando, Fla., opened in April.

and...

The investment in parks and resorts has hit $10.5 billion since Iger became CEO in October 2005, significantly more than the $8.2 billion predecessor Michael Eisner spent in the last seven years of his tenure.

Note that the above doesn't include MM+ either, which was another $2B invested into P&R.

 

[rteetz]

Source? Because this article from June 2012 states otherwise - http://news.yahoo.com/disney-investment-parks-resorts-tops-10-5b-during-065204346.html The new touches are part of a wave of investment by Disney in parks and resorts that is expected to top $3 billion in the fiscal year through September, the highest in company history. Among the recent projects: — the Aulani resort in Hawaii opened in August 2011; — an expansion of Hong Kong Disneyland opened in November 2011; — the Disney Fantasy cruise ship launched in March; — the first phase of an expansion of Fantasyland at the Magic Kingdom in Orlando, Fla., opened in April. and... The investment in parks and resorts has hit $10.5 billion since Iger became CEO in October 2005, significantly more than the $8.2 billion predecessor Michael Eisner spent in the last seven years of his tenure. Note that the above doesn't include MM+ either, which was another $2B invested into P&R.

This is from a poster on wdwmagic.com who does some of the best things with Disney numbers I've ever seen

"Stating the obvious, this a Walt Disney World fansite, not a The Walt Disney Company fansite. What many here care the most about is Walt Disney World.

Iger has been a strong company CEO. That's great; that's his job.

However, he's been a terrible CEO for Parks & Resorts.

Let's compare one of the most basic business metrics: gross margin.

Excluding Parks & Resorts, Iger's average gross margin has been 25.1%. Compare that to former CEO Michael Eisner's 17.1%.

Conversely, Eisner's Parks & Resort average gross margin was 22.0% vs. Iger's 14.7%.

Iger's "leadership" not only had resulted in fewer additions and much higher prices at Walt Disney World, but his "squeeze every penny from the 'guests'" attitude has actually resulted in a decline in margin.

I'm a fan of Walt Disney World. Outside of Parks & Resorts, I couldn't give a hoot about the rest of the company.

For anyone who is a fan of Disney's theme parks, Iger has been Disney's worst CEO ever."

In Igers 9 years 6-7 of those have been the worst in company history for the theme parks.

 

[rteetz]

Source? Because this article from June 2012 states otherwise - http://news.yahoo.com/disney-investment-parks-resorts-tops-10-5b-during-065204346.html The new touches are part of a wave of investment by Disney in parks and resorts that is expected to top $3 billion in the fiscal year through September, the highest in company history. Among the recent projects: — the Aulani resort in Hawaii opened in August 2011; — an expansion of Hong Kong Disneyland opened in November 2011; — the Disney Fantasy cruise ship launched in March; — the first phase of an expansion of Fantasyland at the Magic Kingdom in Orlando, Fla., opened in April. and... The investment in parks and resorts has hit $10.5 billion since Iger became CEO in October 2005, significantly more than the $8.2 billion predecessor Michael Eisner spent in the last seven years of his tenure. Note that the above doesn't include MM+ either, which was another $2B invested into P&R.

Igers biggest thing is making more money while adding less. The attractions and experiences added during Eisner vs Iger is quite significant.

 

[Bob Roberts]

I don't think you know how percentages work, and I'm not sure you understand what the S&P 500 and the Dow are either.

If interest rates went up, Disney would likely still outperform the Dow and S&P500. Maybe it drops, but not to the same percentage level the Dow would. The company is taking in record-setting revenue from many divisions under Iger, that is what is driving the performance of the stock, as compared to the benchmarks and market indicators.

With what the company is doing over the last 6-8 years, the stock would be up (in terms of performace against benchmarks) in any financial climate.

Iger is out performing other stocks in the Dow because he creating artificially record high revenue through cost cutting, price gouging, and creative accounting. You can only get away with this for so long. You cannot put up the smoke screen forever. Disney can get away with this better then others due to its lovey dovey wholesome image. The thing is that image will eventually change when consumers start rejecting their price gouging and cost cutting measures, which they will. Look at General Motors becoming complacent in the market. Instead of innovating which made them what they were, they just rested on their big name. They quit innovating and started cost cutting to increase revenues just like Disney. What happened? The public eventually rejected them.

Iger knows that the stock market is being propped up artificially by the government and he is doing what ever it takes to show high revenues so people buy in at these overly inflated prices. Get back to me when the stock market's huge bubble burst's in the next few years and people no longer have faith in the Disney name due to Iger's nickel and dime approach to growing revenues.

 

[rteetz]

Iger is out performing other stocks in the Dow because he creating artificially record high revenue through cost cutting, price gouging, and creative accounting. You can only get away with this for so long. You cannot put up the smoke screen forever. Disney can get away with this better then others due to its lovey dovey wholesome image. The thing is that image will eventually change when consumers start rejecting their price gouging and cost cutting measures, which they will. Look at General Motors becoming complacent in the market. Instead of innovating which made them what they were, they just rested on their big name. They quit innovating and started cost cutting to increase revenues just like Disney. What happened? The public eventually rejected them. Iger knows that the stock market is being propped up artificially by the government and he is doing what ever it takes to show high revenues so people buy in at these overly inflated prices. Get back to me when the stock market's huge bubble burst's in the next few years and people no longer have faith in the Disney name due to Iger's nickel and dime approach to growing revenues.

Very well said and I completely agree.

 

[lockedoutlogic]

I see the Pom poms have been deployed...

 

[twebber55]

not surprised..im sure Iger wants to see the completion of the DAK expansion as well as Shanghai and part of DHS

 

[rteetz]

not surprised..im sure Iger wants to see the completion of the DAK expansion as well as Shanghai and part of DHS

And Shanghai is rumored to be massively delayed