By Gary Symons
TLL Editor in Chief
After a rough two years for the Walt Disney Company, Robert Iger has been reappointed as the company’s CEO.
Iger will replace Bob Chapek, who has stepped down from the position of CEO.
Iger spent more than 40 years at Disney and also ran the company as CEO during 15 of its most successful years, overseeing massive growth that made Disney the undisputed king of entertainment.
But like most studios, Disney suffered a rough few years during and after the pandemic. While the Disney Board of Directors expressed their thanks to Chapek, whose fate it was to run the company during an historically unprecedented period of trials and tribulations for both box office film and for location-based entertainment.
“We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic,” said Susan Arnold, Chairman of the Board. “The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period.”
Iger has agreed to serve as Disney’s CEO for two years, with a mandate from the Board to set the strategic direction for renewed growth and to work closely with the Board in developing a successor to lead the Company at the completion of his term. The change at the helm comes as Disney struggles to rebuild its audience for films in cinema, to attract fans to its various theme parks, and simultaneous wages war in the ongoing battle for TV streaming supremacy.
Iger, whose DNA flows through every aspect of the company, is seen as a person with skills and inside knowledge that literally no one else in the world can match at this time.
“Mr. Iger has the deep respect of Disney’s senior leadership team, most of whom he worked closely with until his departure as executive chairman 11 months ago, and he is greatly admired by Disney employees worldwide–all of which will allow for a seamless transition of leadership,” Arnold explained.
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Arnold will remain in place as chair of the Disney board, a position that Iger also held before his prior departure two years ago.
“I am extremely optimistic for the future of this great company and thrilled to be asked by the Board to return as its CEO,” Iger said. “Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the globe, most especially in the hearts of our employees, whose dedication to this company and its mission is an inspiration.
“I am deeply honored to be asked to again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unrivaled, bold storytelling.”
The decision to replace Chapek came after two turbulent years, ending with the company posting lower than expected earnings in the last quarter. As well, directors, actors and producers have been grumbling about Chapek’s cost-cutting measures and what could be seen as a blunt approach to talent.
The Disney theme park sector also continued to suffer during what was supposed to be a strong recovery for the division, which also coincided with a wave of complaints of price hikes from theme park attendees.
The slower than expected recovery of Disney revenue fell short of Wall Street analysts’ expectations in the last quarter for both profit and revenue, a rarity for the House of Mouse. That sent share value tumbling this past week by 12 per cent. Overall, share prices for The Walt Disney Co. are down 40 per cent for the year-to-date.
To be fair, Iger held the steering wheel at Disney during the boom years from 2005 to 2020 and did not have to deal with the pandemic, the current economic downturn or the effects of the War in Ukraine, but it’s also true that he successfully guided the company through the devastating financial crisis in 2008-2009.
During his 15 years as CEO, from 2005 to 2020, Iger helped build Disney into one of the world’s most successful and admired media and entertainment companies. Perhaps most critically, Iger expanded on Disney’s legacy of storytelling with the acquisitions of Pixar, Marvel, Lucasfilm and 21st Century Fox. All of those acquisitions led Disney to a dominant position at the box office, and increased the company’s market capitalization fivefold during his time as CEO.
“Iger continued to direct Disney’s creative endeavors until his departure as Executive Chairman last December, and the Company’s robust pipeline of content is a testament to his leadership and vision,” the company said.
As well, Iger guided the landmark opening of Disney’s first theme park and resort in mainland China, the Shanghai Disney Resort; and was at the helm for the release of a number of record-setting films including Marvel’s Avengers: Endgame, Disney’s Frozen and Frozen 2, and the groundbreaking movie Marvel’s Black Panther.
Iger was also responsible for the one move that helped the company not only weather the pandemic, but set it up as one of the dominant forces in the lucrative streaming market as he guided the highly successful launch of the Disney+ streaming service in November 2019 and ESPN+ in 2018.
As revenue plunged for all forms of in-person entertainment, Disney’s streaming services served as the one bright spot in an otherwise gloomy picture, with the company now rivalling Netflix for supremacy in the sector.