Bob Iger steps down as Disney CEO... and Comes Back Again

[MagnarTheGreat]

Chapek may be the 'fall guy' for what happens this year. Better to step aside while the getting was perceived as good.

CNN - Disney shareholders narrowly approve CEO Bob Iger's pay package (March 7, 2019)

Disney shareholders on Thursday narrowly approved a compensation package for CEO Bob Iger worth as much as $35 million this year.

Iger is set to receive a $3 million annual base salary, along with an annual bonus targeted at $12 million. He's also eligible every year for a stock grant targeted at $20 million. That grant will vest over time as an incentive for Iger to remain with Disney.

57% of shareholders voted in favor of the package. The vote happened days after Disney reduced Iger's target compensation by $13.5 million, according to paperwork filed with regulators Monday.

The tepid vote also came a year after Disney (DIS) shareholders rejected Iger's compensation package in a rare rebuke. Only seven S&P 500 companies received less than 50% of shareholder support for their pay packages in 2018, according to As You Sow, a non-profit that runs and consults on shareholder campaigns. The firm promotes many progressive policies, particularly involving environmental and social change.

Such votes are non-binding, which means the company isn't required to follow shareholder recommendations.

But even if a package ultimately passes, low approval numbers are still important to look at, said Rosanna Landis Weaver, an As You Sow program manager who researches CEO pay. As You Sow called Iger the sixth most overpaid CEO in its 2019 ranking.

"Fifty and passing isn't some magical number given that this vote is advisory in the first place," Weaver said. "It may be symbolic to Disney, but it shows tremendous dissatisfaction on the part of shareholders."

USA Today - Disney CEO Robert Iger announces 2021 retirement (April 2019)

“I’m expecting my contract to expire at the end of 2021," Iger quipped, before addressing the question. "I’d say, ‘This time I mean it,’ but I’ve said that before. I’ve been CEO since October 2005 and as I’ve said many times, there's a time for everything, and 2021 will be time for me to finally step down."

 

[Snow Queen]

Big hostage video energy.

 

[Gold Samurai]

Another week, another Bob...

At least they only have to change the last name on the boss's door


Iger's still the chairman of the company and thus the head of the board, meaning the new CEO will still answer to him. Still, this traditionally means the new CEO will be more hands-on and Iger will be more hands-off.


According to this, he's going to direct the company's creative content

 

[MagnarTheGreat]

Chapek has a rep for cutting costs and being tight with money, so him being the fall guy while so that company tightens the belt to appease shareholders has a logic to it.

 

[Wheels]

How long until Horn is gone?

 

[Kahran Ramsus]

I'm worried this will be the start of a decline for Disney. Not good given how much power they have in Hollywood and the struggles/demise of much of the their competition.

 

[Sithborg]

Chapek is apparently despised by hardcore Disney fans for the way he runs the parks division . I don't really like the idea of Iger stepping down much at all myself. He was running things during the rise of the MCU, the return of Star Wars on film, and the Revival Era of Disney animated films so I'll miss the Iger Era of Disney. Really the only bad thing about Iger's run from a movie perspective is these mediocre live action remakes.

Sounds absolutely like the person most likely to be accepted as Iger's replacement.

 

[Kuwolski]

Well something happened behind the scenes that got him the job.

He did a great job running consumer products and running Disney Parks globally. The things people don't like about him were hardly something he was doing independently. As for how he'll do as CEO,time will tell, but he's got impossible shoes to fill in terms of growing the business on the scale Iger did. I hate how this went down though because Kevin Mayer was a key figure in a lot of the big deals Iger made and is currently running the most important segment for their business at the moment, D2C.

 

[jmc]

I'm worried this will be the start of a decline for Disney. Not good given how much power they have in Hollywood and the struggles/demise of much of the their competition.

If a decline is to happen it's already been going on, it's just hidden behind the money they've been making. Disney have acquired a lot of wealth through purchasing franchises since Iger took over, but they haven't been an innovator for decades. When there's nothing left to buy all you have left is innovation. Lack of innovation eventually leads to stagnation, which eventually leads to decline. It doesn't matter though, even if the company were to decline someone else will come along with new innovations which will transform the industry. It's all a cycle.

 

[Kuwolski]

I'm worried this will be the start of a decline for Disney. Not good given how much power they have in Hollywood and the struggles/demise of much of the their competition.

It's possible. Under normal circumstances I'd be more concerned, but considering where they are now in the early stages of a global streaming initiative, the board would be quick to act if there was even the hint of him screwing things up. The question if they made the right choice in appointing him CEO is a legitimate one, and everyone has to earn their stripes, but I would have preferred other options.

 

[mackblack01]

I heard he might be interested in politics.

 

[terry78]

Everybody wants to get into the act.

 

[Kuwolski]

Interesting (legitimate) take. Alex created the Hulu Original's brand back in the day.

 

[Wheels]

I heard he might be interested in politics.

Ewww

I don't like his politics.

 

[Detective Conan]

Bob Iger will go down in history as one of the greatest businessman in Entertainment. His ambition in facilitating and purchasing brands were second to none in the industry. I’m honestly in awe and envy at what he accomplished for his company. He made Disney (which had been struggling to the point it was almost going to be sold to Comcast) the biggest studio in the world, where they have an embarrassment of riches when it comes to big IP, and they’ve essentially become the undisputed king of the box office. It was Iger who had the prudence to expand the Disney brand like never before through his purchases of big brands like Pixar, Marvel, Lucasfilm, and Fox(the most recent and most controversial purchase), and kept Disney’s legacy alive — he might be the most influential person to ever run the company after Walt Disney himself.

Any studio in the industry would kill to have someone even as half as talented as Iger and I feel with him leaving it’s an end of an era.

 

[Flint Marko]

They've obviously had wild success under his tenure, but I can't help but wonder if the relatively poor/cynical perception of the Star Wars brand and live-action remakes has played a factor in this?

They're in the black with both of those endeavors but I wonder if shareholders expected more and that sped up his departure.

 

[Kuwolski]

They've obviously had wild success under his tenure, but I can't help but wonder if the relatively poor/cynical perception of the Star Wars brand and live-action remakes has played a factor in this?

They're in the black with both of those endeavors but I wonder if shareholders expected more and that sped up his departure.

No chance. The market cap rose 400% under his leadership, thanks in large part to his acquisitions and business strategy, like purchasing Lucasfilm. If he wanted to be CEO for another decade there would have no hesitation to bring him back. The Star Wars controversies are largely internet based and are not at all seen like major failures to the general public, nor investors. The last two are certainly under performers and disappointing, but still highly profitable.The Mandalorian is also one of the most viewed/in-demand series of the last decade and the launch title of their new streaming service. Let's not forget about that. I'm not a fan of the live-action remakes, but again, cynicism largely in various pockets online. They are a license to print money.

 

[Detective Conan]

 

[Wheels]

If I had my way Bob Iger would run Disney until he dies but I can't get everything I want.

 

[Kuwolski]

 

[Silvermoth]

Gee pretty crazy. His era pretty much reshaped pop culture as we know it

 

[Sithborg]

Did they ever resolve the parks tax issues?

 

[CaptainWagner]

Iger certainly accomplished some incredible things in his run. That said, I can't complain to see him go. Maybe Star Wars can finally be revitalized now that his meddling hands are off the steering wheel.

 

[Mysteryman]

Iger certainly accomplished some incredible things in his run. That said, I can't complain to see him go. Maybe Star Wars can finally be revitalized now that his meddling hands are off the steering wheel.

Yeah, like the current state of Star Wars is all Bob Iger's fault.

 

[CaptainWagner]

Yeah, like the current state of Star Wars is all Bob Iger's fault.

Primarily, yes. It's not exactly a secret that it's Iger who insisted on everything being kept within the OT era. It's Iger who insisted they release a movie a year. It's Iger who refused to delay Solo's release. Now, who's to say what was behind the decision to hire separate directors and not set a clear story arc for the ST, but if you ask me, his fingerprints are all over it. Regardless, I think it's very clear they're better off without his involvement.