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

[OKW Lover]

I'm hoping it will eventually be Josh D'amaro. He just needs a few years in his new role as president of WDW, and he may be ready.

Love Josh. But Disney is more than just theme parks. He would need a much broader experience.

 

[Remy is Up]

It's hard to say while Iger is still in charge of "creative" but once it's officially Chapel's game:

- Massive slashes to operating budgets, meaning less upkeep and maintenance of the parks (lots of fading paint and more broken animatronics) and less and poorer training for cast members (look for the Batuuan Lingo and the First Order Cast Members on Rise to take a nosedive within a year)
- Wholesale layoffs of remaining live entertainment and union workers (no more Main Street Philharmonic, etc)
- Halt of any unannounced construction projects (no DL Tomorrowland overhaul, no Pixar expansion in HS, certainly no fifth gate in WDW)
- Curtailing of any announced construction projects (Epcot doesn't need to look like the concept art, it just needs to be finished as quickly and cheaply as possible).

Do you have information or facts to back up these assertions? Ive found that when a new CEO takes over a company, Similar to all the noise we heard when Eisner stepped in, When Iger stepped in, its easy to overreact and assume. Better to sit back and watch over time rather than make assumptions you could look foolish for pronouncing without any facts.
The old adage sometimes its best to keep quiet and let people assume you are stupid than to open your mouth and prove them right.

Time will tell on any new CEO and it makes more sense to let it play out and things happen before passing judgement. Im neither a fan nor a non fan of Chapek. I am however a stockholder and from chats with people more in tune with the inner workings of the Disney business model, they do not expect all the disaster so many passers by are expecting. The reaction I was able to gather from the majority who do have knowledge is they actually expect the parks to be more of a focus now that Iger has created the war chest of money from the studios side. And that the person to hold people accountable with all of that money is Chapek. We shall see. But IM certainly not going to make statements of certainty about something I have no clue on. And neither should others. If you go in expecting it to be bad, regardless of how good it is, youll always say its bad. Try being in the middle and wait and see.

 

[hertamaniac]

I don’t want a leader that reacts. I want a leader that is pro active. Disney’s competition is not universal. It is everything on which that people spend discretionary dollars. EU could actually be good for Disney. It could get people to the area who might otherwise not travel to central Florida. Now how to get those people to give Disney a try?

That was the point I was trying to make (a proactive leader should be prepared). In Orlando, Disney's competition is generally regarded as Universal Studios (which is what I should have been more clear on). EU could help drive folks to Orlando and WDW. I also see it that could drive folks to EU and away from WDW (in the shorter term). I think the pricing for an EU ticket/package is what is going to determine the magnitude of impacts.

 

[mshanson3121]

With all of the past political rumors involving Iger, does anyone else think this could be a preparation for being a candidate for VP on a presidential ticket this year?

Hard to say. One of the articles listed quotes him as saying he originally wanted to run for president this year, but couldn't due to contracts/projects. So maybe?

 

[Searc]

Hard to say. One of the articles listed quotes him as saying he originally wanted to run for president this year, but couldn't due to contracts/projects. So maybe?

He's still under contract until the end of 2021.

 

[TrolleyTrouble2713]

Do you have information or facts to back up these assertions? Ive found that when a new CEO takes over a company, Similar to all the noise we heard when Eisner stepped in, When Iger stepped in, its easy to overreact and assume. Better to sit back and watch over time rather than make assumptions you could look foolish for pronouncing without any facts.
The old adage sometimes its best to keep quiet and let people assume you are stupid than to open your mouth and prove them right.

Time will tell on any new CEO and it makes more sense to let it play out and things happen before passing judgement. Im neither a fan nor a non fan of Chapek. I am however a stockholder and from chats with people more in tune with the inner workings of the Disney business model, they do not expect all the disaster so many passers by are expecting. The reaction I was able to gather from the majority who do have knowledge is they actually expect the parks to be more of a focus now that Iger has created the war chest of money from the studios side. And that the person to hold people accountable with all of that money is Chapek. We shall see. But IM certainly not going to make statements of certainty about something I have no clue on. And neither should others. If you go in expecting it to be bad, regardless of how good it is, youll always say its bad. Try being in the middle and wait and see.

As a shareholder, you must understand that investors want to see growth. Unsustainable, perpetual growth. When a person like Bob Chapek needs to create growth, he cuts expenditures - in other words, he cuts guest benefits. In the best case scenario he will ignore the parks entirely and tell whoever takes his old job to do whatever, just stay in budget. But that's a tough thing to believe in. The CEO always impacts Imagineering the most.

 

[mshanson3121]

He's still under contract until the end of 2021.

Given he has expressed interest in politics, and that he has no interest in remaining with Disney at the end of his contract, I'm somewhat wondering why he doesn't try and get out of the contract. Would the penalties be that high? Does Disney really need/want him that badly? Is the contract that iron-clad?

 

[hertamaniac]

As a shareholder, you must understand that investors want to see growth. Unsustainable, perpetual growth.

I look to invest in companies that have sustainable growth. If they can't sustain it, then I generally look elsewhere.

 

[Searc]

Given he has expressed interest in politics, and that he has no interest in remaining with Disney at the end of his contract, I'm somewhat wondering why he doesn't try and get out of the contract. Would the penalties be that high? Does Disney really need/want him that badly? Is the contract that iron-clad?

It was announced he will remain with Disney in a lesser role until the end of his contract.

 

[mshanson3121]

It was announced he will remain with Disney in a lesser role until the end of his contract.

Oh definitely, I read that, too. I was just curious as to why, if he doesn't really have any interest in being there.

 

[rteetz]

Given he has expressed interest in politics, and that he has no interest in remaining with Disney at the end of his contract, I'm somewhat wondering why he doesn't try and get out of the contract. Would the penalties be that high? Does Disney really need/want him that badly? Is the contract that iron-clad?

It was a stipulation of the Fox merger deal.

 

[Brianstl]

Unpopular opinion time...….

Bob Chapek is the best guy that could have took over Disney when it comes to the parks and resorts. No one understands better the importance of them to Disney's overall bottom line. He understands that they are what consistently drives profits and generates goodwill for the company. Chapek knows they are what allows Disney to take risk in everything else they do. Chapek isn't going to take over and try to make Disney a tech company or some other business they aren't while thinking the parks and resorts are some unsexy relic from the past.

 

[TraderSamWDW]

Given he has expressed interest in politics, and that he has no interest in remaining with Disney at the end of his contract, I'm somewhat wondering why he doesn't try and get out of the contract. Would the penalties be that high? Does Disney really need/want him that badly? Is the contract that iron-clad?

I think Disney would ignore the contract if were of there own ended up in a high powered political office. Mickey's Trademark coming to an end this decade would be much less of an issue for one!

 

[rteetz]

Unpopular opinion time...….

Bob Chapek is the best guy that could have took over Disney when it comes to the parks and resorts. No one understands better the importance of them to Disney's overall bottom line. He understands that they are what consistently drives profits and generates goodwill for the company. Chapek knows they are what allows Disney to take risk in everything else they do. Chapek isn't going to take over and try to make Disney a tech company or some other business they aren't while thinking the parks and resorts are some unsexy relic from the past.

I don’t disagree with you there. Disney though isn’t a theme park company, they are first and foremost an entertainment company and film studio. Putting someone in charge with no experience there seems like a risk and apparently one they are willing to take.

 

[hertamaniac]

On the plus side, distracts from the arguing over Boarding Groups

Which, ironically, appears to have had a major software issue this AM. I wish there was a thread where we could continue that discussion.

@mshanson3121

 

[Mattimation]

I don’t disagree with you there. Disney though isn’t a theme park company, they are first and foremost an entertainment company and film studio. Putting someone in charge with no experience there seems like a risk and apparently one they are willing to take.

to be fair, he did begin at Disney in entertainment - namely Home Entertainment, where he’s credited with creating the “Disney Vault,” and eventually became in charge of distribution for Walt Disney Studios. No, that’s definitely not the same as being in charge of a creative film studio, but he at least worked adjacent with them for a while

 

[rteetz]

to be fair, he did begin at Disney in entertainment - namely Home Entertainment, where he’s credited with creating the “Disney Vault,” and eventually became in charge of distribution for Walt Disney Studios. No, that’s definitely not the same as being in charge of a creative film studio, but he at least worked adjacent with them for a while

Yes but like you said not the same. He’s now in charge of day to day of some of the biggest film studios in the world. We all know LucasFilm has struggled a bit, Marvel is on a downturn after such a high, and Fox is still very new to the portfolio. My question is will be able to steer those aspects in the right direction. On the bright side he still has Iger to help with that for a while.

 

[Brianstl]

I don’t disagree with you there. Disney though isn’t a theme park company, they are first and foremost an entertainment company and film studio. Putting someone in charge with no experience there seems like a risk and apparently one they are willing to take.

Is that really what Disney is first and foremost today? Over the last two fiscal years Disney Parks, Experiences and Products has generated 56% of Disney's income due to continuing operations of Disney. More than half of all Disney's employees work in Disney Parks, Experiences and Products. Disney is an entertainment conglomerate where the most important division is dominated by the parks and resorts. Everything else Disney does combined does not generate as much income or employ as many people as Disney Parks, Experiences and Products.

 

[rteetz]

Is that really what Disney is first and foremost today? Over the last two fiscal years Disney Parks, Experiences and Products has generated 56% of Disney's income due to continuing operations of Disney. More than half of all Disney's employees work in Disney Parks, Experiences and Products. Disney is an entertainment conglomerate where the most important division is dominated by the parks and resorts. Everything else Disney does combined does not generate as much income or employ as many people as Disney Parks, Experiences and Products.

When you have 12 theme parks that takes a lot of people run them so of course that’s where most of their employees are.

I stand by that Disney is first and foremost an entertainment company. They don’t have those parks without their content. Look at Disney+, that was their biggest endeavor in years. That’s content, all of which can be used for the parks but they start with the IP/content. Disney didn’t make $11 billion at the box office in 2019 because they are a theme park company.

 

[Q-man]

Interesting .. lots of speculation to be had. Is he being blamed for the Star Wars "mess" (where a lot of the fan base just lost interest despite pumping out 5 movies in 5 years)? Is Disney+ under performing (I mean it is still so new .. I wouldn't think that would be it)? Is the Fox merger not going as planned?
Is the parks having attendance issues? (doesn't seem like it)
I wouldn't think any of those things would call for an "immediate" replacement .. *shrug*

Spending $5 Billion-ish on StarsWars(rights plus two lands) and decimating the franchise in the rush to cash in?