When Did Bob Iger Turn on Bob Chapek?

Disney’s previous CEO Bob Chapek was widely disliked by fans and received heavy criticism from investors and shareholders. But is it possible that Chapek never really had a chance to do his job?

Chapek became the CEO of Disney at a difficult time — right before the COVID-19 pandemic hit the U.S. He had to navigate the unprecedented time of theme park closures and then careful reopenings months later. Chapek was also handed the massive task to make Disney+ profitable when the streaming service was still very young and pandemic-related production delays made adding new content very difficult. But those problems aren’t the only ones Chapek faced: Chapek’s predecessor, Bob Iger, was unwilling to let go of his role at Disney, and Iger’s repeated interferences apparently soured the relationship between the Bobs. But where exactly did that relationship go bad? Iger once endorsed Chapek as the best person to take over once he left the position — so when did Bob Iger TURN on Bob Chapek?

Let’s Start at the Beginning…

When Bob Iger was being pushed to find a successor the first time around, he was presented with several different options, including people like Kevin Mayer (who developed and launched Disney+) and Tom Staggs (who was the Chief Operation Officer). Passing up alternative options, Iger focused instead on Chapek, who was the Chairman of Disney Parks, Experiences, and Products at the time.

Iger hand-picked Chapek to be his successor, and Chapek was unanimously elected to become the next CEO by the Disney Board of Directors. When the transition happened in February 2020, Bob Iger said, “I have the utmost confidence in Bob.”

He also said, “Bob will be the seventh CEO in Disney’s nearly 100-year history, and he has proven himself exceptionally qualified to lead the Company into its next century. Throughout his career, Bob has led with integrity and conviction, always respecting Disney’s rich legacy while at the same time taking smart, innovative risks for the future. His success over the past 27 years reflects his visionary leadership and the strong business growth and stellar results he has consistently achieved in his roles at Parks, Consumer Products, and the Studio. Under Bob’s leadership as CEO, our portfolio of great businesses and our amazing and talented people will continue to serve the Company and its shareholders well for years to come.”

The feelings of respect and admiration were apparently mutual. When Bob Chapek was announced to be the new CEO, he said “Bob Iger has built Disney into the most admired and successful media and entertainment company, and I have been lucky to enjoy a front-row seat as a member of his leadership team. I share his commitment to creative excellence, technological innovation and international expansion, and I will continue to embrace these same strategic pillars going forward. Everything we have achieved thus far serves as a solid foundation for further creative storytelling, bold innovation, and thoughtful risk-taking.”

At the start of the transition, the Bobs appear to have at least respected one another. Iger expressed confidence in Chapek’s ability to lead, a confidence that he later lost, according to some sources.

The tension between the CEOs might have started right at the beginning of Chapek’s tenure, when Iger made it clear that he intended to be a strong presence at the company even after Chapek assumed his new role.

Iger Never Planned to Leave Immediately

Iger never planned to leave Disney immediately after stepping down as CEO. In the announcement about Chapek’s new position, Iger said, “I have the utmost confidence in Bob and look forward to working closely with him over the next 22 months as he assumes this new role and delves deeper into Disney’s multifaceted global businesses and operations, while I continue to focus on the Company’s creative endeavors.” Iger may not have been the CEO, but he was also not absent from Disney.

Iger’s official position at this time was the Executive Chairman, and it was planned that he would keep this role through 2021. His comments above seem to imply that he would be working on almost an equal footing with Chapek, managing creative projects while Chapek worked in business and operations. In fact, Iger didn’t even give up his office when he stepped down.

The Board was also eager to keep Iger on for a while longer. Susan Arnold (the Lead Director of the Board at that time) said, “Mr. Chapek will also benefit from the guidance of one of the world’s most esteemed and successful business leaders, Bob Iger.” She went on to sing Iger’s praises, listing his accomplishments and stating that “Iger’s strong leadership and clear strategic vision” led the company to “unparalleled financial and creative heights.”

Iger and Chapek Didn’t Always Agree

However, it seems that Chapek was less than thrilled about having Iger as a mentor. According to CNBC, one of Chapek’s “biggest mistakes was icing out Iger rather than making him a trusted advisor.” Not relying on Iger’s help might have made Chapek look bad in the eyes of the Board. It also meant that Chapek was on his own when it came to handling complex problems, such as the Scarlett Johansson lawsuit, which many agree was handled poorly by the Disney CEO.

So why did Chapek begin to “ice out” Iger? The pair had a few disagreements early on in Chapek’s tenure as CEO and even before he took the job.

First of all, Chapek wanted to furlough over 100,000 Disney parks employees once the COVID-19 pandemic forced the theme parks to close in early 2020 (Wall Street Journal). Iger “wanted to delay staff cuts until Congress approved legislation to blunt the economic impact of the pandemic,” but Chapek preferred to move quickly in order to save the company money. Ultimately, Iger won the support of the board and Disney waited on the furloughs. After that incident, Chapek apparently “complained privately to his deputies that he wasn’t fully in control.”

In April 2020, Iger told the New York Times that he was changing course due to COVID-19. He said, “A crisis of this magnitude, and its impact on Disney, would necessarily result in my actively helping Bob [Chapek] and the company contend with it, particularly since I ran the company for 15 years.” This seems to be the point when Chapek and Iger’s relationship took a turn for the worse.

In December 2020, Chapek announced new projections for Disney+ subscriber numbers, and his predictions were noticeably different from the ones Iger announced in April 2019. Iger had told investors to expect 60 to 90 million subscribers for Disney+ in the first 5 years, preferring to underestimate and overperform. A year and a half later, Chapek raised those targets, stating that Disney+ could reach 260 million subscribers by 2025. Iger apparently criticized this move and felt that the goal was overambitious.

Another instance when the 2 Bobs disagreed was with Disney’s response to Florida’s Parental Rights in Education law, commonly called the “Don’t Say Gay” law by critics. Chapek was initially silent on the matter, which led to many unhappy fans and employees who wanted Disney to speak out against the bill. Iger, by contrast, tweeted out, “If passed, this bill will put vulnerable, young LGBTQ people in jeopardy.”

Chapek soon reversed course and began speaking out against the law. He stated that Disney has always been working against the bill but had been doing that work behind the scenes. He released a message to employees, stating, “You needed me to be a stronger ally in the fight for equal rights and I let you down. I am sorry.”

Later, in an interview with Christ Wallace, Iger criticized how Chapek handled the situation. He said, “one of the things that CEOs accept as a responsibility is that they’re going to have to weigh in on issues, even if voicing an opinion on those issues potentially puts some of your business in danger.” Bob Iger was essentially acting as a “shadow CEO” (WSJ), analyzing Chapek’s decisions and providing criticism along the way.

The Situation Came to a Head

Although the Disney Board unanimously voted to renew Bob Chapek’s contract in June 2022, they ousted him just months later and brought back Bob Iger. The coup came after Disney’s Earnings Call on November 8th, during which Chapek apparently “glossed over a $1.47 billion loss in Disney’s streaming division” and instead spoke mainly about successes in the theme parks.

Investors criticized Chapek’s report, and Christine McCarthy (the Disney CFO) got on the phone with Bob Iger and asked him to return. He did so on November 16th — just 11 months after Iger left the company.

That 2022 Earnings Call may have been the nail in the coffin for Chapek’s time as the Disney CEO, but Chapek reportedly attests that he isn’t entirely to blame. Apparently he “complained to colleagues that Ms. McCarthy gave numbers that they hadn’t previously discussed, making him look bad” (WSJ). This problem of being excluded and criticized due to strained relationships seems to have been a pattern during Chapek’s tenure, both with Iger and McCarthy.

So Where Did It All Go Wrong?

Looking at the timeline, it seems like the start of the COVID-19 pandemic was a turning point for the Bobs. Iger saw the unprecedented situation as a reason to be more involved at Disney, despite stepping down from his position as CEO just weeks before. Chapek saw that involvement as interfering with his own ability to lead and take over the role of CEO.

If the pandemic had never happened or even if it had happened later, when Chapek had had some time to adjust to his new position, could Iger have stepped away more fully and allowed Chapek the room to become the leader Disney needed?

Considering Iger’s history with Disney and his clear unwillingness to leave the company, it’s difficult to believe that Iger would have been a hands-off mentor for Chapek, regardless of the world situation. The question that everyone is asking now is Can Iger choose another successor and do it right this time?

To learn more about Iger and Chapek, check out these posts:

• CEO Bob Iger Announces New Rules for Employees
• Why History Says Bob Iger Will Fail
• What Bob Iger Can Do that Bob Chapek Couldn’t
• Bob Iger vs. Bob Chapek: How Different Are They Really?

Keep following AllEars for more updates on all the latest Disney news!

Click here to see how the Disney Board is helping Iger choose a successor.

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