Disney brings Bob Iger back to the fold. He will serve as the new CEO immediately replacing Bob Chapek, after the latter’s mismanagement of the company.
After Iger went back as the chief executive, share went up by 8% a dat after. Iger left the company 11 months ago, sending dramatic reactions from the company staff. When Chapek took over, the Disney faced several problems, in light of increasing expenses in the company. Subsequently, Chapek announced planned cut costs in the company. However, even with the surge of sales in the company’s theme park arm, Disney underperformed compared to Wall Street analysts’ expectations.
“The Walt Disney Company (NYSE: DIS) announced today that Robert A. Iger is returning to lead Disney as Chief Executive Officer, effective immediately. Mr. Iger, who spent more than four decades at the Company, including 15 years as its CEO, 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. Mr. Iger succeeds Bob Chapek, who has stepped down from his position,” the company said.
“It is with an incredible sense of gratitude and humility — and, I must admit, a bit of amazement — that I write to you this evening with the news that I am returning to The Walt Disney Company as Chief Executive Officer,” answered Iger in a letter.
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Iger as a good leader
Disney said Iger’s leadership will lead the company to triumphs. The company remains confident of Iger, despite the current market conditions. Under the Iger’s tenure, he acquired several companies like Pixar, Lucasfilm, and Marvel. The acquisition lef to billions of revenue to the company. Hence, in the face of myriad of diffulties troubling the company, Disney saw it fit to bring back Iger into the manegement.
“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,” said the Chairman of the Board, Susan Arnold.
“During his 15 years as CEO, from 2005 to 2020, Mr. Iger helped build Disney into one of the world’s most successful and admired media and entertainment companies with a strategic vision focused on creative excellence, technological innovation and international growth,” added the statement.
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Chapek out of the picture
Chapek’s role as CEO received an extension from Disney earlier this year. However, his schemes did not fare well with employees and investors. He introduced steps to counter the economic crisis, including layoffs. Moreover, the company earned less than expected during the latest quarter. While Iger favored Chapek as his successor years ago, they had a falling off, ultimately leading, to miscommunication between the two.
“We thank Bob Chapek for his service to Disney over his long career, including navigating the company through the unprecedented challenges of the pandemic,” added Arnold.
Photo Credit: MasterClass
Source: CNBC
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